24994 EXTENSIONS OF REMARKS August 8, 1978 during such period, was receiving food (g) SPECIAL RULES FOR AGRICULTURAL LABOR ments, etc. of tax) is amended by redesignat­ stamps under the Food Stamp Act of 1977. AND RAILWAY LABOR.-For purposes of this ing subsection (k) as subsection (1) and by (10) PRE-EMPLOYMENT PERIOD .-The term subpart- inserting after subsection (j) the following "pre-employment period" means the 60-day (1) UNEMPLOYMENT INSURANCE WAGES.­ new section: period ending on the hiring date. (A) AGRICULTURAL LABOR.-If the services "(k) SUSPENSION OF INTEREST ON UNDER­ (11) HmiNG DATE.-The term "hiring date" performed by any employee for an employer PAYMENTS WHICH ARE ATTRIBUTABLE TO IN­ means the day the individual is hired by the during more than one-half of any pay period TERNAL REVENUE SERVICE ERROR.-Interest employer. (within the meaning of section 3306(d)) shall not be imposed under subsection (a) (d) QUALIFIED FmST-YEAR WAGES CANNOT taken into account with respect to any year for any period ending on or before the 30th EXCEED 30 PERCENT OF FUTA WAGES FOR ALL constitute agricultural labor (within the day after the date of notice and demand by EMPLOYEEs.-The amount of the qualified the Secretary for payment of the amount of first-year wages whch may be taken into meaning of section 3306(k)), the term "un­ employment insurance wages" means, with an underpayment, on any portion of such account under subsection (a) (1) for any underpayment which is attributable to infor­ taxable year shall not exceed 30 percent of respect to the remuneration paid by the em­ ployer to such employee for such year, an mation, advice, or an interpretation given the aggregate unemployment insurance in writing to the taxpayer by an officer or wages paid by the employer during the cal­ amount equal to so much of such remunera­ employee of the Internal Revenue Service endar year ending in such taxable year. For tion as constitutes "wages" within the mean­ acting in his official capacity, and is not at­ purposes of the preceding sentence, the term ing of section 3121 (a), except that the con­ tributable to a failure by the taxpayer to "unemployment insurance wages" has the tribution and benefit base for each calendar provide adequate and accurate information." meaning given to the term "wages" by sec­ year shall be deemed to be $6,000. SEc. 127. Subsection (a) of section 6653 tion 3306(b). (B) RAILWAY LABOR.-If more than one­ of such Code (relating to failure to pay tax) (e) REMUNERATION MUST BE FOR TRADE OR half of remuneration paid by an employer is amended by adding at the end thereof the BUSINESS EMPLOYMENT.- to an employee during any year is remunera­ ( 1) IN GENERAL.-For purposes of this sub­ following : "No amount shall be added to part, remuneraton paid by an employer to tion for service described in section 3306 (c) such tax by this subsection with respect to an employee during any year shall be taken (9). the term "unemployment insurance any portion of an underpayment which is into account only if more than one-half of wages" means, with respect to such employee attributable to information, advice, or an the remuneration so paid is for services per­ for such year, an amount equal to so much interpretation given in writing to the tax­ formed in a trade or business of the em­ of the remuneration paid to such employee payer by an officer or employee of the Inter­ ployer. during such year which would be subject to nal Revenue Service acting in his official (2) SPECIAL RULE FOR CERTAIN DETERMINA­ contributions under section B(a) of the capacity, and is not attributable to a failure TION.-Any determination as to whether Railroad Unemployment Insurance Act (45 by the taxpayer to provide adequate and ac­ paragraph (1), or subparagraph (A) or (B) U.S.C. 358(a)) if the maximum amount curate information." of subsection (g) (1), applies with respect subject to such contributions were $500 per SE c:. 128. The amendments made by this to any employee for any year shall be made month. without regard to subsectons (a) and (b) of Act shall apply with respect to information, section 52. · (2) WAGES.-In any case to which subpara­ advice, and interpretations received by the ( 3) YEAR DEFINED.-For purposes Of this graph (A) or (B) of paragraph (1) applies, taxpayer after the date of the enactment of subsection and subsection (g) , the term the term "wages" means unemployment in­ this Act. "year" means the taxable year; except that, surance wages (determined without regard for purposes of applying so much of such to any dollar limitation) . H.R. 13635 subsections as relates to subsection (d), such By Mr. DORNAN: term means the calendar year. H.R. 13511 -Page 58, after line 15, insert the following (f) SECRETARY OF LABOR To NOTIFY EM­ new section: PLOYERS OF AVAILABILITY OF CREDIT.-The By Mr. WOLFF: Secretary of Labor, in consultaton with the -Page 44, line 14, insert the following: SEc. 863. None of the funds appropriated Internal Revenue Service, shall take such by this Act may be used to pay for abortions steps as may be necessary or appropriate to Subtitle D-Taxpayer Service Accountab111ty performed by any means, nor may any of such keep employers apprised of availability of SEc. 126. Section 6601 of the Internal Rev­ funds be used to promote or encourage the credit provided by section 44B. enue Code of 1954 (relating to underpay- abortions.

EXTENSIONS OF REMARKS NEW YORK'S BARGE CANAL DE­ Seen in this perspective, it is clearly de­ ception than Orleans. And in its earlier days, SERVES FEDERAL ASSISTANCE serving of Federal operating assistance. even transportation was an item. There were Recently the Medina Journal-Regis­ times when the quarrying industry, an ac­ ter, a daily newspaper in my congres­ tive and prosperous one at the time, de­ HON. JOHN J. LaFALCE pended on the canal for the transportation sional district, published an editorial on of its products and much of the grain that OF NEW YORK this issue. I think it warrants the atten­ was grown in our county was shipped to IN THE HOUSE OF REPRESENTATIVES tion of all our colleagues in Congress, outside points through the use of the canal. Tuesday, August 8, 1978 and accordingly I submit it to be printed Through generous use of state funds the in the REcoRD at this time. canal system has been maintained in ex­ • Mr. LAFALCE. Mr. Speaker, back in The editorial follows: cellent condition and we here in Medina the early 1800's Gov. DeWitt Clinton of REQUEST Is LATE have had sufficient opportunity of observing New York State courageously invested the annual costs of maintaining the water­ Speaking in Albion Saturday before the way. By virtue of its natural course we are the State's resources in the development sesquicentennial ceremonies audience, State of the Erie Canal. "Clinton's Ditch," as blessed with one of the finest harbors to be Transportation Commissioner William C. found along the entire system. We have it was disparagingly called, turned out Hennessy stated that New York State is now also had an opportunity of observing just to be a major success story for the State attempting to get the federal government to how expensive it is to keep the state water­ and for the Nation as a whole. It became assume a portion of the expense of oper­ way in the proper condition to accommodate the major link between the East and the ating the Barge Canal System. Hennessy not only for generous use by pleasure craft Midwestern part of the United States. revealed that he was taking his appeal to but the depth necessary for what commer­ Washington later this month with the hope cial usage is being made at p·resent. From that day to this the State of that it would receive favorable attention at New York has reemphasized its commit­ Certainly New York State can use to a Senate subcommittee hearing. advantage any assistance that the federal ment to waterborne commerce. Now the He bases his appeal on the position that barge canal system remains as one of the federal government is taking in financing government might make in supporting the most of the canals throughout the United canal throughout the state. Just what sort only two of which I am aware which is of a case Commissioner Hennessy will make entirely State supported. All other in­ States. We wish the commissioner well. However, before the subcommittee in Washington we land waterways in the United States are we feel that the request is being made sev­ have no way of evaluating. It is not con­ assisted by the Federal Government. eral decades late. ceivable that it will be based on the past I believe that this Congress ought to Outside of its transportation use, probably economic effects that the canal has had recognize the barge canal for what it no county in the state has received more (and they were of national concern then for is-a major link in a national system. benefits from the canal system since its in- the canal opening was responsible for a most

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., • August 8, 1978 EXTENSIONS OF REMARKS 24995 substantial reduction in rates then charged rules, be treated as gross income to the car­ The lOth district opposition to a soft by the railroads.) · riers. H.R. 11986 follows our recommenda­ line toward the Soviet Union is about the We must recognize that what we see here tions in requiring the credits against excise same as its opposition to detente with in Orleans County is only a small part of tax to be counted as gross income. Once this the canal system, a part that probably has is done, it is consistent with general tax rules Red China at the expense of Taiwan. as little usage for commercial crafts as any to gra.nt the investment credit fo·r amount.s More than 78 percent of the responses segment in the state. invested in aircraft that are paid for by opposed recognition of Red China at the But there are peripheral usages, such as credits against excise tax revenues. expense of Nationalist China; only 21.5 a feeder for streams that bisect the canal, as In the part of H.R. 11986 setting forth the percent favored such a course. we have an opportunity of observing here proposed rules for the allowance of credits On economic issues, the lOth district in Orleans County, and particularly in Me­ for qualified aircraft expenditures, the Secre­ favors a substantial tax cut and higher dina where Oak Orchard Creek is dependent tary of the Treasury is given the authority to during much of the year on canal for ade­ prescribe such regulations as may be neces­ tariffs on foreign-m~de products. quate supply for power plants. sary to carry out the provision. Furthermore, Asked if they would favor a substantial We trust that federal assistance for the no cred.it or refund is to be allowed to an air­ tax reduction as a means of stimulating canal can be obtained. But we are many years line unless the Secretary of the Treasury the economy, 76.9 percent said yes. late in making our appUcation.e receives a certific;ation of the qualified ex­ At the same time, 53.8 percent said penditures from the Secretary of Transporta­ they would support higher tariffs as a tion. These provisions, plus the general au­ means of reducing the volume of im­ U.S. TREASURY POSITION ON AIR­ thority these Departments have to enforce ported goods, even though it would mean PORT AND AIRCRAFT NOISE RE­ laws within their jurisdiction, provide ade­ higher prices. DUCTION ACT, H.R. 8729, TITLE III quate authority for the agencies to fully re­ view and enforce the proposed requirements On another economic question, the as to use of the excise tax funds. voters of the lOth District overwhelm­ HON. GLENN M. ANDERSON During consideration of the financing pro­ ingly blamed the Congress for the infla­ OF CALIFORNIA visions by the House Committee on Ways and tion now plaguing our economy. Almost Means, the Treasury Department suppo~ted 63 percent of the responses blamed the IN THE HOUSE OF REPRESENTATIVES the "retroactive" features of the credits. Congress; only 19.6 blamed big business, Tuesday, August 8, 1978 Making credits available for qualifying ex­ penditures after January 24, 1977, is a mat­ 8.5 percent the President, and 9 percent e Mr. ANDERSON of California. Mr. ter of equity to those ope·rators who have the public. Speaker, this past week a letter which already made expenditures to comply with The lOth district is also overwhelm­ I had requested from the Department of the Federal Aviation Administration's rules ingly opposed to "cradle to grave" Fed­ the Treasury was forwarded to the Hon­ as to noise standards which were effective eral health insurance. More than 72 as of January 24, 1977, for pre-December 31, orable James J. Delaney, chairman of the 1974, production aircraft of pre-1969 design. percent of the responses favored cata­ Rules Committee. A copy was furnished Sincerely, strophic insurance from private carriers tome. DONALD C. LUBICK, as the solution to the Nation's health The letter sets out the position of the Assistant Secretary for Tax Policy.e crisis; only 27.9 percent favored a Gov­ Treasury regarding title III of H.R. 8729. ernment program. It especialy answers certain questions The people were equally as adamant in which had been raised before the Rules TENTH DISTRICT RESPONDS TO their opposition to any extension of the Committee. CONGRESSIONAL QUESTIONNAIRES time given for ratification of the Equal I feel it appropriate to bring this in­ Rights Amendment. Almost 72 percent of formation to the attention of the Mem­ HON. L. A. (SKIP) BAFALIS those responding said they were opposed bers as they prepare to consider this im­ OF FLORIDA to granting an extension to the 7-year portant issue. IN THE HOUSE OF REPRESENTATIVES limit; while 28.3 percent said they would The letter follows: endorse an extension. DEPARTMENT OF THE TREASURY, Tuesday, August 8, 1978 The district is even more adamant in Washington, D.C., July 31, 1978. • Mr. BAFALIS. Mr. Speaker, every its opposition to legislation allowing gov­ Hon. JAMES J. DELANEY, Chc:irman, House Committee on Rules, year since I arrived in the Congress, I ernment employees-on any level-to Washington, D.C. have conducted a district-wide public strike. More than 92 percent of the re­ DEAR MR. DELANEY: Congressman Glenn opinion sampling, involving the mailing sponses were in opposition to govern­ M. Anderson, Chairman of the Aviation Sub­ out of some 345,000 questionnaires. ment strikes; only 7.4 percent approved. committee on Public Works and Transpor­ This year, we received some 31,000 re­ The voters of the 15-county district are tation, wrote to Secretary Blumenthal re­ sponses, and there is no doubt that the opposed to Government regulation of questing clarification of the Treasury's po­ people of Florida's lOth District have two sition as to H .R. 11986, the Noisy Aircraft business. Asked if they felt the Govern­ Revenue and Credit Act of 1978. Mr. An­ major concerns-inflation and our for­ ment should regulate business to protect derson stated that the following questions eign policy. consumers and workers, only 37.8 percent were raised in recent hearings before your The people are concerned about said yes; 62.2 percent said no. Committee and asked for clarification as to detente with the Soviet Union, particu­ Tenth district residents showed their the Treasury's position thereon. larly since they fear the United States is concern with foreign policy and economic (1) Is H.R. 11986 consistent with our tax the weaker militarily. laws in other areas in reqt,iring carriers re­ matters when asked to rank those issues I would like to share the results of the considered most important. ceiving credits under the bill to report such questionnaire with you so that every credits as ordinary income and also in al­ The issue selected as the single most lowing carriers to use the investment tax Member of Congress will know of their important was maintaining a strong na­ credit .for amounts received as credits concerns. Almost 81 percent of the 31,601 re­ tional defense, which was No. 1 on 31.4 against the excise taxes; percent of the responses. It was followed (2) Does H.R. 11986 provide sufficient ac­ sponses tabulated in the sixth annual countab111ty so as to assure the funds made districtwide questionnaire called for a closely by reducing inflation which was available to carriers will receive adequate hardening of our policy toward the So­ No. 1 on 29.4 percent of the returns. scrutiny by the Federal Government; and viet Union. Another 17.8 oercent said our Looking at the issues selected most as ( 3) Do we believe that the credits to the present policy should be maintained, either first or second, economics moved carriers should be available for qualifying to the forefront. Nearly 46 percent of the aircraft noise suppression expenditures· go­ while 1. 7 said our policy should be eased. ing back to January 25, 1977? At the same time, 53.8 percent of the returns chose reducing inflation as either Originally, it was proposed in H.R. 8729 responses viewed our defense capability No. 1 or No. 2, while 41.7 percent picked that airline operators be required· to impose as less than that of the Soviet Union, national defense as either 1 or 2. a tariff surcharge and keep the surcharge while 37 percent said both countries were The third-ranked issue was reducing revenues in a separate account to be used for about equal militarily. Only 9.1 percent the size of Government, selected No. 1 the retrofit o•r replacement of noncomplying said we were stronger than the U.S.S.R. on 9.6 percent of the returns, followed noisy aircraft. That bill would have excluded closely by solving the energy problem the surcharge revenues from the gross in:­ On a related issue, 72.5 percent of those come of the carriers. The Treasury Depart­ responding said they would favor res­ which placed No. 1 on 8.5 percent. Fifth ment argued that any funds made available toration of the draft as a means of man­ came balancing the budget, which showed to the carriers from payment by customers, ning our Armed Forces, while 27.5 per­ up as No. 1 on 8.3 percent, although it should, following normal tax accounting cent opposed the idea. showed even better among the issues EXTENSIONS OF REMARKS August 8, 1978 chosen :first or second, appearing then on One of the best parts of this private wears, he is truly an All-American. He 20.8 percent of the ballots. sector initiative is the fact that it is in leaves a splendid example for all of us Sixth on the list was restoring confi­ its own title. It has high visability, rather to follow and his legacy to the veteran dence in Government, placing No. 1 on than being the whim of some bureaucrat will affect eternity.e 6.5 percent of the ballots, while welfare and stuck in some other program opera­ reform came next showing up :first on 6 tion. The visability provided this pro­ percent. Reducing crime placed eighth, gram by the House bill should insure not coming :first on 4 percent, with reducing only its success, but its continuation. Un­ HELP FOR YOUTH GROUPS unemployment close behind on 3.8 per­ fortunately, while I am in full support cent of the returns. of the title VII program, I do not think HON. JOSHUA EILBERG Cleaning Up the environment was lOth that it goes far enough. I hope that this among the 10 choices listed, showing up is just the :first step in revamping our OF PENNSYLVANIA 1st on 3 percent of the returns. Another employment and training efforts, and IN THE HOUSE OF REPRESENTATIVES 1.2 percent offered their own suggestions that in the next few years most, if not Tuesday, August 8, 1978 for the issue deserving of top priority.• all, of our programs will be operated e Mr. En..BERG. Mr. Speaker, the Na­ through the private sector. tion's most valuable asseli is its youth. Quite aside from the private sector I have introduced today a bill that is program, I have some serious reserva­ OVERCOMING CETA'S SHORT­ designed to aid the youngsters of our tions about the provision of retirement Nation, at minimal cost to the Govern­ COMINGS benefits to CETA public service employ­ ment, and I trust you will draw the sup­ ment participants. Section 121 (c) (4) of port of my colleagues. the bill provides that CETA funds may The bill would make independent HON. WILLIAM F. GOODLING be used for contributions to retirement OF PENNSYLVANIA boys' and girls' clubs eligible to partici­ systems or plans if the contribution bears IN THE HOUSE OF REPRESENTATIVES pate in the donated Federal surplus a reasonable relationship to the cost of property program. These clubs are de­ Tuesday, August 8, 1978 providing benefits to participants. While signed to provide educational and recre­ e Mr. GOODLING. Mr. Speaker, in the it is difficult to say how that reasonable ational afterschool activities for our very near future, the House will take relationship is going to be developed, and Nation's youngsters. Unfortunately, they under consideration H.R. 12452, a bill to I am certain that some bureaucrat down are not presently eligible to receive sur­ at the Labor Department will, with some plus property even though they serve a amend and extend the Comprehensive slight of hand, tell prime sponsors how Employment and Training Act, com­ to demonstrate the relationship, I ques­ vital need in the community. Under pres­ monly known ·as CETA. Since its incep­ tion the reasonableness of providing ent law, eligibility is limited to a wide tion, CETA has provided State and local CETA participants with retirement bene­ variety of public tax-supported agencies units of government funds to provide un­ fits. After all, here we have just given and nonprofit health and educational employed persons with training and em­ them a job and now they get retirement institutions. ployment opportunities. However, it has benefits. I can not believe that the House We must face the fact that the Gov­ done little to involve itself with the pri­ is willing to go along with such an idea. ernment cannot adequately handle the vate sector of our economy; the place We are supposed to be helping people increasing demands and needs of our where employment opportunities exist, who are unemployed by providing them children who vitally need an outlet for and the one place where we can be sure transitional employment with the antic­ the excess energy generated during t:ne that employment opportunities will con­ ipation that they will make it off the growing process of the adolescent years. tinue to exist and increase. The bill Federal payroll; we are not supposed to Too often the lack of suitable recreation­ which was favorably reported by the al facilities forces an o.~odolescent into House Education and Labor Committee, be providing these people with benefits other activities-leading to the involve­ H.R. 12452, makes an effort to overcome for the rest of their lives. An amendment ment of boys and girls, at shockingly the shortcomings of the past that is, the to strike the retirement benefits pro­ early ages, in areas like drug abuse, lack of cooperation with the private visions from the bill will be offered, and street crime, and vandalism. Independ­ sector. I urge the House.to adopt it.e ent girls' and boys' clubs :fill the gap left Title VII of H.R. 12452, Private Sector when the coalition of Federal, State, and Opportunities for the Economically Dis­ local governments fails to counteract the advantaged, is this :first bold attempt. OLIN E. TEAGUE VETERANS' peer pressure placed on youngsters to The House bill would authorize $400 HOSPITAL join in grownup activities. I need not million for fts~al year 1979, and such remind my colleagues of the importan~e sums as may be necessary for :fiscal year of providing to impressionable adole3- 1980, for a demonstration program to HON. JACK BRINKLEY cents an alternative to drugs and crime. test the effectiveness of a variety of ap­ OF GEORGIA Because of the gap left by the lack of proaches to increase the involvement of IN THE HOUSE OF REPRESENTATIVES government services, local citizens have the business community in employment Tuesday, August 8, 1978 joined together and formed clubs paid and training activities supported under for by various fundraising activities, and the act and to increase the private sec­ e Mr. BRINKLEY. Mr. Speaker, it is a staffed these clubs with dedicated men tor employment opportunities for eco­ special pleasure to support the memorial and women who volunteer their time to nomically disadvantaged persons. Grants designation of the "Olin E. Teague Vet­ assure their children of meaningful rec­ would be made available to prime spon­ erans' Hospital." reational opportunities. But ::.hese clubs sors for the establishment of private "TIGER" TEAGUE is an uncommon man, :find it difficult to keep the facilities industry councils (PIC's) . The bill re­ remarkable in achievement, with a res­ properly maintained, especially in these quires that a majority of the PIC's mem­ ervation in history as the father of the days of inftation. The use of Federal sur­ bership be from the business community, GI bill. His place in the "Sands of Time" plus property would go a long way to­ and at least half of the business repre­ has been secured through real service to ward insuring that these clubs can con­ sentatives would have to be from small his fellow man both in the Congress and tinue their much needed service to the businesses (:firms with under 500 em­ in the military service of the United youth of the Nation with adequate facil­ ployees), for, as we all know, the largest States of America. ities and supplies. area for employment opportunities is in It is uniquely :fitting that we do this Mr. Speaker, I ask for the support of the small business community. The because of the record. But what the rec­ my colleagues for H.R. 13783, a bill which House bill requires that any private sec­ ord does not completely reveal is the will enable these important organizations tor efforts under title VII shall be in depth of character of the man. He is a to participate, along with schools and addition to and not supplant existing thoughtful conservative, and notwith­ other community groups, in the Federal private sector opportunities. standing the Texas brand which he surplus property program. By support- August 8, 1978 EXTENSIONS OF REMARKS 24997 ing my bill, my colleagues will be sup­ speaker without an audience has a difficult nent closing of steel producing and fabri­ porting a valuable program in commu­ time getting the point acroEs.e cating facilities in California with resulting nities throughout the Nation, it will be permanent loss of jobs; and Whereas, Two thousand four hundred an investment in the future of our members of the United Steelworkers of Amer­ country.e CALIFORNIA RECOGNITION OF THE ica Union at Kaiser Steel's Fontana Califor­ STEEL IMPORT PROBLEM nia steel mlll have collected more than $5,600,000 in federal ~ash awards after the U.S. Department of Labor found that "in­ IGNORE THE NAZIS creased imports ... contributed importantly HON. GEORGE E. BROWN, JR. to the unemployment of a significant num­ OF CALIFORNIA ber of workers" at the Fontana mlll; and HON. EDWARD J. DERWINSKI IN THE HOUSE OF REPRESENTATIVES Whereas, The loss of long-term job security OF ILLINOIS Tuesday, August 8, 1978 and resulting payroll, and loss in generation of taxes to support local and state govern­ IN THE HOUSE OF REPRESENTATIVES e Mr. BROWN of California. Mr. ment, could continue unabated without Tuesday, August 8, 1978 Speaker, the current difficulties that strong affirmative intercession at the federal government level; and e Mr. DERWINSKI. Mr. Speaker, the American steel producers are experienc­ ing are well know. What may not be so Whereas, There are serious doubts that the Members are well aware of the national "trigger price" mechanism set by federal au­ controversy that has raged during the well known is the impact of these diffi­ thorities as a means of imports control, truly legal battle precipitated by the so-called culties upon the Western steel market, serves the needs of western steel producers; American Nazi party, a mere handful of where import levels at twice the national now, therefore, be it individuals, with their plans to publicize average have worsened the situation. Resolved by the Assembly and Senate oj their views during a series of rallies. Recently, Representative DoN CLAUSEN the State oj California, jointly, That the and I sponsored a briefing for Members Legislature of the State of California re­ In my opinion, the best way to handle spectfully memorializes the President and this group is to ignore them completely. of Congress on the situation in the West­ ern steel market. Mark Anthony, presi­ the Congress of the United States to pursue The July 30 edition of the Star Tribune, vigorously the prompt and full enforcement a publication serving the suburban com­ dent of Kaiser Steel, and Jack Sheehan of the Trade Act of 1974 and especially the munities of Chicagoland, very appropri­ of the United Steelworkers of America, antidumping laws; and be it further ately editorializes on this subject. provided a. valuable session that brought Resolved, That the recommendation of the The editorial follows: home a number of points regarding the Solomon Task Force be promptly and thor­ unique position of the Western States in oughly reevaluated as to its potential to in­ [From the Star Tribune, July 30, 1978] international trade. The session also advertently, but disastrou::.ly, fall to cope BEST ADVICE ON NAZI RALLIES: IGNORE THEM dealt with the inadequacies of current in the western states; and be it further Frank Collin and his tiny band of nee­ trade policies and made suggestions for Resolved, That legislation now pending in Nazis have announced plans to hold rallies remedies. Congress be enacted promptly to enable in a number of suburbs, including South states, under a uniform federal procedure, to Holland and Dolton. The California Legislature has also establish a system of preferential bidding How to handle Collin's group has become been examining the problems that Amer­ upon all state set contracts requiring the a major problem for governmental bodies, ican steel producers are experiencing due purchase of steel which preference would civic groups and the news media. to the impact of these disruptions on allow for the purchase of domestic manu­ On the one hand, courts have ruled on the California's economy. Accordingly, the factured and produced steel, and fabrir.ated issue of free speech, which is one of the basic legislature recently passed Assembly steel products; and be it further guarantees in the U.S. Constitution. On the Joint Resolu:ion 91, memorializing the Resolved, That the Chief Clerk of the As­ other, Collin's group represents a vile and Federal Government to take action to sembly transmit copies of this resolution to repugnant point of view. the President and Vice President of the Collin has even gone as far as claiming he deal with the problem of unfair foreign competition. The text of the resolution United States, Chairmen of the House and has substantial support in this area. While Senate "Steel Caucus," Speaker of the House there may be a few misguided persons who follows. of Representatives, and to each Senator and adhere to the thinking of the Nazi party, by ASSEMBLY JOINT RESOLUTION No. 91- Representative from California in the Con­ and large, most south suburbanites want Col­ RELATIVE TO FOREIGN STEEL IMPORTS gress of the United States.e lin to crawl back to his Chicago headquarters Whereas, the California Legislature fully and stay there. recognizes the importance of international Since the Nazis thrive on conflict and pub­ trade, and resulting benefits accruing to the licity, there are some very difficult decisions state from tax revenues, job creation and POPE PAUL VI which must be made about their plans. general economic stimulation through bi­ First, municipal officials must decide on lateral foreign trade; and whether to issue permits to the Nazis to hold Whereas, Both foreign and domestic pro­ HON. JOHN M. MURPHY their rallies in local parks. Secondly, police ducers of goods and services are vital to the departments must decide how much security state's continued stability and general eco­ OF NEW YORK is neceesary. Civic groups must decide wheth­ nomic development, and these producers. IN THE HOUSE OF REPRESENTATIVES er to stage counter-protests. News media should be encouraged to ensure viable eco­ Monday, August 7, 1978 officials must decide how to play the stories nomic progress, and fair and equitable com­ about the Nazis. petition; and e Mr. MURPHY of New York. Mr. One thing which must be avoided is a tend­ Whereas, The California Legislature has Speaker, the death of Pope Paul VI, the ency to overplay the situation. The Nazis received communications from employees, 262d successor to St. Peter, is certainly a plannec. march on Skokie received inter­ employers, and labor leaders of the Cali­ national attention. There's certainly no need sad moment, not just for Catholics of the fornia steel producing and steel fabricated world, but for all of mankind. He was a for that here. products industry requesting presidential The best bet would be for local authorities and congressional action to control the great man who worked tirelessly for simply to issue the permits, alert their police alarming increase of low priced foreign steel world peace and guided the church departments to tl ~ possibllities for trouble imports into the western marketing area; through times of social and religious un­ and let Collin have his say. and rest; yet he was also a common man who Local residents can do their part by ignor­ Whereas, Steel imported into the western saw the need for the church to open its ing the rallies. If Collin doesn't attract a states in 1977 accounted for a record 38 per­ doors to breathe in some fresh air. He crowd, he and his would-be "stormtroopers" cent (3,311,000 net tons) of the market, as was a progressive who brought together will just have to leave and go back to selling compared to 18 percent nationwide; and the traditional teachings of Catholicism T-shirts. Whereas, There is strong evidence that for­ and the realities of modern humanity; For our part, we'll cover the rally situation, eign steel producers are "dumping" their because the public must be kept informed of product into the U.S. steel market with the few other Popes in all of history, much happenings in their community, but we won't support, subsidy and encouragement of their less in modern times, have faced, and overplay the story. There'll be no screaming governments toward the end of sustaining conquered, such a difficult task. headlines or sensationalism. their employment levels; and Pope Paul knew that the church is an In the end, the best advice is to let the Whereas, The impact of this increase in institution which "runs without depend­ Nazis have their rally, but ignore them. A foreign steel imports has caused the perma- ence on any single person," and he CXXIV--1572-Pa.rt 18 24998 EXTENSIONS OF REMARKS August 8, 1978 Members to join with me in seeking re­ cators-and many do exist-that the Lithu­ brought that sense of individual service anian nation continues to successfully re­ toward the church with him when he lease of the Lyle and Rogovin reports.• sist the russifica tion policies imposed by the became Pope in 1963. Seldom has there USSR. As for the Lithuanian emigre com­ been such an open and accessible Pope; munity, the Lithuanian legation has ~ot never in modern times has there been been over the past 10 years, and perhaps such a shift in opinions and attitudes, A NATION THAT DOES NOT GIVE UP never was, a leading center of Lithuanian both toward and within the church, nor activity. Mr. Sherwood would have done well could there have been any more able to focus some of his attention on Lithu­ anian organizations such as the Lithuanian­ hands in which to place the guidance of HON. EDWARD J. DERWINSKI American Community, the Lithuanian­ such major changes. OF ILLINOIS American Councll, the Supreme Committee Under his leadership, the church ended IN THE HOUSE OF REPRESENTATIVES for the Liberation of Lithuania, the Knights the rule which allowed only Latin for of Lithuania, which, besides leading the the Mass, allowed contemporary music Tuesday, August 8, 1978 struggle for human rights and self-deter­ in religious services, and permitted Cath­ e Mr. DERWINSKI. Mr. Speaker, in the mination in Soviet-occupied Lithuania, or­ olics to eat meat on Fridays. Pope Paul ganize an annual Lithuanian opera, operate July 17 RECORD, I inserted an article by Lithuanian schools on Saturdays in major also canonized the very first American­ Mr. John Sherwood which concerned the U.S. cities, publish Lithuanian poetry and born saint, Mother Elizabeth Ann Seton, story of Lithuania as seen through the novels, conduct summer camps for Lithu­ who was born .in my district of Staten current Lithuanian charge d'Affaires anian-American chlldren, and organize art Island, N.Y., and was known for her here in Washington. The article was car­ exhibits. founding of the Daughters of Charity ried in the Washington Star and several A dying ethnic group is not granted a meet­ order of nuns in Emmitsburg, Md. Lithuanian-Ameri:an readers of that ing with the vice president of the United Pope Paul recognized that the Catholic publication felt that the article contained States. Last June 13. Lithuanian-American Church faced great difficulties, and he leaders met with Mr. Mondale in the White a number of inaccuracies that needed House. Just this past Fourth of July holiday, told his close friends that he wished to clarification. over 10,000 Lithuanians flocked to Toronto, die as a pontiff who had kept the church One such reader, Mr. Victor Nakas, in Ont., for the Lithuanian World Festival, anchored in a time of change. As Christ a letter to the editor, refutes the major which included a massive song festival, Lith­ told his followers, "upon this rock I will inaccuracies that he found in the Lithu­ uanian teachers conference, an olympiad build my church." That rock was anian legation article. I insert his reply with participants from as far away as Aus­ St. Peter, the first Pope. And during his to Mr. Sherwood's letter at this point: tralia, and a gathering of delegates to the Lithuanian World Congress. I shouldn't have 15 year papacy, Pope Paul VI maintained A NATION THAT DoEsN'T GIVE UP the solidity of the rock of St. Peter.e to be writing these facts about young, In his July 5 story about the Lithuanian vibrant Lithuanians. They should all have legation in Washington, your John Sherwood been in John Sherwood's article. displayed e. genuine sense of compassion for the tragic fate of the Lithuanian Republic. One final point. With any luck, blacks in His recapitulation ot Lithuanian history was Rhodesia and South Africa will in a few CALL FOR RELEASE OF LYLE RE­ accurate. However, one important factual in­ years more have completely thrown off the PORT AND ROGOVIN REPORT ON accuracy as well as the morose tone of the yoke of colonialism. Then it must be the Sherwood narrative are weaknesses that need turn of the Baltic states of Estonia, Latvia CIVIL SERVICE REFORM and Lithuania, which are currently occupied to bo rectified. Mr. Sherwood makes a glaringly false ref­ by the greatest of colonializers and imperial­ erence to the "former nation of Lithuania." ists, the Great Russian Soviet empire. Amer­ HON. WILLIAM M. BRODHEAD If the Lithuanian nation does not today oc­ ican public opinion has been too content for cupy the geographical region known before too long to pick on such small fish as Chile OF MICHIGAN and Rhodesia while choosing to ignore the IN THE HOUSE OF REPRESENTATIVES 1940 as the Republic of Lithuania and desig­ nated now as the Lithuanian Soviet Socialist transgressions of giant Russia. Calling Rus­ Tuesday, August 8, 1978 Republic, then who does? Perhaps Mr. Sher­ sia to task for her sins in the stuff that the wood means to imply that Lithuanians have moral courage Solzhenitsyn finds wanting in e Mr. BRODHEAD. Mr. Speaker, in been gradually eradicated as a nation by the our society is made of. line with the House consideration of Russians since the Second World War? I sug­ VICTOR A. NAKAS, civil service reform, I have been con­ gest that he and interested Star readers study Vice President tor Political Af!airs, tacted by Detroit City Council Presi­ Richard Krickus' excellent July 16, 1976, ar­ Lithuanian World Youth Association .• dent Erma Henderson on behalf of her ticle in Commonweal entitled, "Persecution organization, the Women's Conference in Lithuania." It is a case study in the tenac­ of Concerns Rome and Vicar of Jesus Christ, by going as making the same request of the anian legation is made to sound for all the to his knees in prayers. administration. world like a funeral home. This may all be Christians and non-Christians alike loved true. It is also true that the Lithuanian and honored Pope Paul VI as the APOSTLE It is of the utmost importance that legation makes an inviting target for either OF PEACE, whose labors in the field of hu­ the final civil service plan which is ap­ a tear-jerking story or an object of ridicule. manity elicited not only words of praise, but proved by Congress safeguards the serv­ There is more to Lithuanians than a lega­ planted within the bosom of all worthy souls ice from political manipulation and pro­ tion. the flower of brotherhood. tects the basic rights of Federal em­ The demonstrations, samizdat and peti­ We, with the National Ecumenical Coali­ ployees. With those goals in mind, I ask tions mentioned above are but a few indi- tion extend our heartfelt sympathy to the August 8, 1978 EXTENSIONS OF REMARKS 24999 Universai Catholic Church and Her 600 Mil­ and $261 in higher taxes next year, after income families, and least generous to lion Members. social secur.ity increases. Moreover, these big corporations. Yours in Christ, inadequate tax cuts will add unnecessary It is my hope that through the amend­ THE REVEREND WILLIAM E. HIBBS, billions to the Federal deficit. This is not ment process, the House can produce a Chairman-Co-Executive Director.e the way to fight inflation. better bill than we have been offered Tax cuts can be designed to help both thus far. If we fail to act, working fam­ taxpayers and the economy. For instance, ilies will be strapped by higher taxes. my plan to reduce social security taxes We cannot let this happen. A MEANINGLESS TAX Bll..L by transferring nonretirement programs I have recommended steps we can take to general revenues would cut payroll toward bringing meaningful tax relief taxes by one-third, bringing an annual to American taxpayers. I hope my col­ HON. HERBERT E. HARRIS II savings of between $183 and $457.50 leagues will join me in insisting upon OF VIRGINIA to the average family. And according to this sort of approach. Reducing the tax Congressional Budget Office estimates, burden is just as important as keeping IN THE HOUSE OF REPRESENTATIVES rolling back social security taxes could the social security system sound, and it Tuesday, August 8, 197 8 actually cut the inflation rate by more is a goal we should strive for this year.e • Mr. HARRIS. Mr. Speaker, within the than one-half of 1 percent and stimulate next week, the House is scheduled to employment by three-tenths of 1 per­ consider H.R. 13511, the Revenue Act of cent. 1978. What began as a tax reform bill, WHATEVER HAPPENED TO TAX REFORM? AMERICA'S INTEREST IN SPORTS and was later scaled down to a tax relief By avoiding the issue of tax reform, bill, has now emerged from the Commit­ H.R. 13511 will leave us with a totally tee on Ways and Means sounding more distorted tax system that costs the Treas­ HON. JAMES J. FLORIO like a miscellaneous revenue measure. In ury billions of dollars in lost revenues OF NEW JERSEY its present form, H.R. 13511 offers the each year. One of the reasons the taxes IN THE HOUSE OF REPRESENTATIVES average taxpayer very little in the way of on the average American are so high meaningful tax relief and even less in is that the taxes on so many large cor­ Tuesday, August 8, 1978 the way of reform. porations are too low. • Mr. FLORIO. Mr. Speaker, it is cer­ I think Congress can do ·better than Unfortunately, the Ways and Means tainly evident that Americans are watch­ this, and I am disappointed ·that the bill leaves the big tax loopholes un­ ing and playing sports as much today as Ways and Means Committee has sent us touched, so some of the largest corpora­ anytime in the past. a "relief" package that will not relieve tions in the country will continue to pay Young and old share a fascination in most taxpayers from higher social secu­ little or no taxes, while the middle-in­ watching or participating in the chal­ rity taxes and a "reform" bill that leaves come working family will pay more than lenges and pleasures that sports bring. virtually all of the old tax loopholes in­ ever. H.R. 13511 cracks down on house­ The daily drama of Pete Rose's latest tact. This country needs a responsible wives driving the kids to school in the hitting streak gave us needed relief from tax bill that lowers the tax burden of family station wagon by taking away the precarious state of the world as we middle-income Americans. their gasoline tax deduction. At the shared the excitement of an aging vet­ RESPONSmLE TAX POLICY same time, it lets the corporate executive eran having fun playing a child's game. continue to write off his three martini America's interest in sports must first When Congress considered the first be credited to the men and women who budget resolution earlier this year, I pro­ lunch, and lets oil companies continue to claim fat tax credits for royalty pay­ devote their personal time to the devel­ posed a program to reduce taxes and opment of sports for our youth. These lower the soaring Federal deficit. In my ments to foreign governments. Basically, there are at least $7 billion individuals, who spend uncounted eve­ view, the essential elements of a respon­ ning and weekend hours toward the de­ sible budgetary and fiscal policy for the in revenue-draining tax loopholes pres­ velopment of regulated sports programs coming year are as follows: ently in our laws that Congress should repeal this year: $1.2 billion lost through for children, inspires the formation of Rolling back regressive and inflation­ teamwork and sense of fairplay that is ary social security taxes; allowing tax credits to oil companies for "taxes" paid to foreign governments; so crucial to the well-rounded develop­ Reducing the Federal deficit by cut­ $2.8 billion lost by allowing international ment of our youth. Certainly the thrill ting $12 billion in wasteful spending corporations to defer taxes indefinitely of participating in spqrts is one of the items in the budget; and, on their foreign source income; $1.6 bil­ fondest memories of childhood. Achieving more equitable taxes for the lion lost by allowing a special deplet!on In this regard I would like to bring average family by eliminating $7 billion allowance for oil, gas and such "min­ to the attention of my colleagues the in unfair tax giveaways to large corpo­ erals" as red clay and oyster shells; $1.6 following article which describes the rations and wealthy individuals. billion lost by allowing corporations to benefits Mr. Bill Ulrich, Audubon Chief Unlike the Ways and Means bill, accelerate the depreciation on their of Police, has brought to the develop­ which proposes an inadequate, deficit­ business assets by as much as 20 percent. ment of South Jersey Little League baseball. Mr. Ulrich's devotion to the financed tax cut, my bill would bring · We should not put up with a tax sys­ real relief by reducing social security development of youth recreation has payroll taxes. And because this proposal tem that gives the biggest breaks to those certainly gained the gratitude of all also reduces wasteful spending and elim­ who can most afford to pay, when we can those who worked with him, and I know inates revenue-draining tax loopholes, it enact valid reforms that will reduce the that his services in the future will surely would actually lower the Federal deficit deficit and take the pressure off middle­ be missed. and help take the pressure off inflation. income taxpayers. The article follows: This, in my opinion, is the kind of re­ WAYS AND MEANS BILL NEEDS WORK [·From the Courier Post, July 31, 1978) sponsible tax policy we can and should When the House considers the Ways AFTER 30-YEAR AssociATION ULRICH Bros pursue. and Means bill and several substitutes, LITTLE LEAGUE GOODBYE A TAX CUT BILL THAT DOES NOT CUT TAXES? we may be reduced to choosing between (By Walt Schumann) According to figures recently released the lesser of evils, rather tha.n trying to Bill Ulrich has been a policeman in Audu­ by the Joint Committee on Taxation, work for a more equitable, sounder, less bon for some 35 years. Last fall, he became the $16 billion worth of tax "cuts" pro­ complex tax system. I intend to work chief of the department. From right before World War II until posed in H.R. 13511 will fail to offset with Members who are dissatisfied with about seven years ago, he also spent many higher social security taxes. In fact, after the committee's work to amend H.R. a fall afternoon and winter evening effi­ the tax "reductions" go into effect, most 13511 in a way which is least damaging c iently officiating South Jersey scholastic taxpayers will end up paying between $29 to the economy, least harmful to middle- football and basketball games: In the proc- 25000 EXTENSIONS OF REMARKS August 8, 1978 ess, he continued an association with sports They would stay around afterwards to talk pleasure and a privilege for me to rec­ which started in the mid-1930s at Audubon and have a good time. Today you don't see High School, where he played football (he that. There are too many other things to ognize his many achievements, and to was an end on the Green Wave's unbeaten attract their interest." commend him for his outstanding pub­ 1! ;7 team), basketball and baseball and Ulrich has a tough time coming up with lic service. I wish him success in his competed in track. an answer when he's asked about any special future endeavors.• His police work, his officiating and his moments in his long tenure. sports background would be enough to make "There have been so many thrills," he says. Ulrich one of the area's best known men. "One of the most satisfying things for me is Ulrich, however, is a famUiar figure to thou­ to see kids start in the Little League then CAMBODIAN REFUGEE sands of others in another way. It is through go on to become scholastic and collegiate STATEMENTS his 30-year association with the Little League sports stars. baseball program. "I've made a lot of friends throughout the Ulrich ended that affiliation Sa.turday country and have met a lot of important when he gave up his post as New Jersey's people only because I've been involved in HON. JOHN B. ANDERSON District 14 director. Before he stepped down Little League. I owe the program a lot." OF •ILLINOIS in favor of Earl Moore, the former Gloucester Little League also owes Bill Ulrich a great IN THE. HOUSE OF REPRESENTATIVES City police chief and a District 14 aide, Ulrich deai.e was given quite a send-off. As he made his Tuesday, August 8, 1978 rounds of the various tournament games capped by the district championship test at e Mr. ANDERSON of Illinois. Mr. Barrington, he was honOTed just about every­ TRIBUTE TO MR. WALTER A. PAYNE, Speaker, I would like to place in the where he went-heartfelt thanks for a job PRESIDENT OF THE BOARD OF well done. RECORD the interviews of two people who TRUSTEES OF McGUFFEY CENTRE, have witnessed the brutality of the Cam­ While Ulrich is stepping down, he won't INC., YOUNGSTOWN, OHIO exactly end his love affair with the Little bodian regime: League program. INTERVIEW WITH CAMBODIAN REFUGEE IN SURIN, THAILAND CONDUCTED BY AMERICAN "I'll still be around to help out in any way HON. CHARLES J. CARNEY EMBASSY OFFICER IN JUNE 1978 I can," he says. "There a~e several reasons why I decided to bow out. OF OHIO Account of Si Suot• "One of them is the increased pressure of IN THE HOUSE OF REPRESENTATIVES Si Suot, 22, came from Koukmon, Oddar my job as police chief. Another is I want to Meanchey Province. Prior to the Khmer have more time to travel and do things I Tuesday, August 8, 1978 Rouge takeover, he had been a student for haven't been able to do before. From Janu­ ten years. He arrived in Thailand with his ary through August of every year, I've had • Mr. CARNEY. Mr. Speaker, I want to wife in February, 1978. His account follows: to spend a lot of time with Little League take this opportunity to extend my con­ Conditions of Living in Democratic Kam­ duties, though I've enjoyed every minute of gratulations to one of my constituents, puchea. "I was assigned to the mobile youth it. There have been some hectic moments Mr. Walter A. Payne, for his leadership group after the Khmer Rouge took over. In like dealing with protests, but the good times and service to the people of the Youngs­ mid-1976, I got married, and we moved to fa.r out numbered the bad." town area. A devoted family man, he the collective Koukmon. I fied to Thailand Ulrich became interested in the Little is married to the former Mildred Gate­ after my wife had a miscarriage. Many women League program in the late 1940s. He recalls wood and the father of two sons. have miscarriages, especially since women it was right after Hammonton won the World have to work until their ninth month of Series, the only South Jersey team ever to Mr. Payne is president of the board of pregnancy. Very few babies are born, partly accomplish that feat, though Delaware trustees of McGuffey Centre, Inc. He has because the husbands and wives are fre­ Township (now Cherry Hill) did finish run­ also served as cochairman of McGuf­ quently separated and assigned to different nerup two years in a row in the mid-1950's. fey Centre's Oapital Fund Drive, as gen­ mobile work units. A meeting with the late John Stevenson, eral chairman and cochairman of Mc­ "Most people are sick from malaria or then a regional director paved the way. Guffey Centre's Membership Campaign, dysentery. The Khmer Rouge have made a "I regard John as the father of Little distilled medicine syrup from the bark. It is and as a volunteer worker for the boys' injected into those who are very sick. It is League baseball in South Jersey," continued and girls' softball teams at the center. Ulrich. "At the time I met him I was trying totally ineffective and most people who are to get Audubon into the program. McGuffey Centre is a community cen­ injected die. If you refuse the injection, they say, 'you fake disease' and you risk death "As long as I can remember, I've believed ter founded in 1939. It is a Community Chest Agency and receives funding from as punishment. The doctor in the clinic is sports were a great outlet for kids. I thought some kind of 'revolutionary doctor.' if a kid didn't like baseball he should be· in­ the Youngstown Area United Appeal. volved in archery or swimming or basketball The center's activities include: Recre­ "Communication in the village is very or whatever. strict. You cannot call on your neighbors at ational programs for youth and adults, any time, even during the rest periods. I "That's why I was attracted to Little crafts, sewing, community forums, could not even visit my parents, who lived League. I saw the program as a way to give neighborhood development pro.iects. day only 200 meters away. If you visit anyone, kids something to do over the summer care programs, programs for the elder­ even your parents, you are accused of plot­ months which kept them off the streets and out of trouble." ly, health programs, and many others. ting. Occasionally, we met in the fields, but even in the fields you are afraid to talk more It didn't take Ulrich long to get deeply In addition to his dedicated work with than a few seconds even with your father. involved. By 1949, he was an assistant to the McGuffey Centre, Mr. Payne is the The atmosphere is very bad. The people are Stevenson. By the early 1950s he became the institutional representative for Troop 18, very distressed.'' regional director himself. Boy Scouts Arrow Head District, a mem­ System of Administration and Punish­ "It was time when Little League was just ber and former treasurer of the Pro-To ment. "The people in the collective are starting to mushroom through the area," Club, a member of the Married Couples divided into production groups of 12 to 18 adds Ulrich. "In 1955, because of expansion, Club, a representative for Local1617 CIO persons each. Each group has a leader ap­ the regions were split up by the national of general fireproofing, and a member of pointed from the group, frequently an 'Old organization. South Jersey was divided into Cambodian' (from the pre-April 1975 Khmer four districts and I became District 14 the board of trustees of the Community Rouge-controlled areas). The vlllage chief is director." Corporation. in charge of the group leaders. Occasionafiy, Ulrich has held the post ever since. Ulrich, On August 25, 1978, the annual ''Mc­ people are moved from one group to another. in the early 1960's became the first man from Guffey Day Festival" will be held at the For example, frequently, there are too many the sta.te to be elected to the na tiona! board McGuffey Centre in Youngstown. Some widows in a single group, and some men are of directors. He also served several years as 5,000 to 6,000 people are expected to be moved to balance the groups. sergeant at arms at the annual convention. in attendance, and I will be there to help "Sometimes after lunch meetings are He has seen a number of changes in the honor Mr. Walter Payne. called to talk about work, only the village program. Some receive his approval-like the chief talks. No oue else dares speak, al­ way Little League pioneered the use of bat­ Mr. Speaker, Walter Payne is a dis­ though occasionally, some of the farmers ting helmets. Others he doesn't like. tinguished citizen of my congressional ask questions related to work. You cannot "When I started, Little League was a way district. He has given unselfishly · of his to bring people together," he recalls. Fammes time and energy to make our community • (Refugee agreed to use of his name in would come from all over town to see games. a better place to live and work. It is a public document.) August 8, 1978 EXTENSIONS OF REMARKS 25001 suggest anything or criticize anything. You sticks, then the bodies !ell into holes al­ during the time the asset was held. Many must agree with everything said and say, 'you ready dug. During the past dry season, when people with average incomes quite accu­ a.re right, mit (comrade)' when the leader I was sent to reclaim some lar.d. I saw many speaks. In the meetings, the village chief corpses along the way, at Baok Mek, on the rately perceive that they would be better will tell you not to complain because, work road from Cheung Tien to 0 Chik. The off just spending their money as they re­ will be delayed. You will be accused or oppos­ clothes had been removed !rom the corpses. ceive it. This is of course in itself some­ ing production. Wild dogs and pigs were eating the flesh from what inflationary. "I! you talk to anyone else, you are ac­ the corpses, which had been covered Ugh tly Sometimes our discussions of capital cused or plotting and your actions are mon­ in shallow graves. There were about fifty gains treatment gets rather abstract and itored. If they think you are actually plan­ holes. Each hole held more than one theoretical, so I looked up some ·actual ning to run away, you are executed. corpse.''e prices from previous decades to get an "I! you complain two or three times about working or living conditions, you are exe­ idea of what difference indexing capital gains would have made. cuted. But there were no such cases in my INDEXING CAPITAL GAINS village, because no one dared to coi"".plain." Chart 1 below shows the impact of Executions. "My older brother, Si Say, was double-digit inflation rates in the 1970's a former soldier. He and his family were 're­ HON. BILL ARCHER on housing prices. The Archer amend- located' out or Siem Reap. We never heard oF TEXAs ment would have reduced by some $9,500 or them again and believe they were exe­ IN THE HOUSE OF REPRESENTATIVES the capital gain on a house purchased cuted. My uncle Samba, 40, was also a farmer and sold at the median 1970 and 1978 at Koukmon. In late 1977, t ~ was 'taken away.' Shortly afterward, his wi!e was told Tuesday, August 8, 1978 prices in the Nation. On the west coast, to 'follow your husband.' We never heard of • Mr. ARCHER. Mr. Speaker, as we be- where housing prices have shot out of either or them again. gin debate later this week on the Reve- control, the difference would be over "In late 1977, I saw three people killed. nue Act of 1978, I hope my colleagues will $26,000. They were brought from another village and carefully consider the importan -e of an Chart 2 shows the impact on two cor­ executed in front of everybody in my village. amendment I offered to the bill in the porate stocks. The example assumes that No one knew why. They were forced to squat down, bow the heads, and then they were hit Ways and Means Committee to eliminate 10 shares of each was purchased in June with sticks. Afterward, the corpses were put taxation of purely inflationary capital 1960 and that those shares, including the under a mango tree, covered with a piece or gains. effects of splits, were sold in June 1970. cloth. Late in the evening, they were buried, That amendment, adopted on a bipar- Inflation in the 1960's was, by today's like dogs, near a fence, as fertilizer !or a row tisan vote of 21 to 16, indexes the basis of standards, relatively restrained-so if the or coconut trees. capital gains. Archer amendment had been in effect in "Now, i! you are related to a former sol­ Apparently there are some misconcep- 1960, the original purchase price would dier or former government official, you are killed. In 1978, they started killing former tions about the beneficiaries of the have been multiplied by 31 percent. In students, those who had studied over six amendment, which I would like to help one stock, the difference in capital gains years, so I fled to Thailand.'' clear up before debate on the bill begins. treatment between present law and un- Human, Civil and Political Rights. "There What seems to be overlooked is the fact der my amendment would be $209.80; in are a few human rights in my village. When that inflation hits hard at all income lev- the other stock, $53.90. you need something, you can ask the group els in our country-but it hits hardest of Mr. Speaker, these are not theoreti­ leader for it, such as !or a new set of clothes all at the middle and working classes who cal examples of how this amendment or tools !or work. You could not ask to re­ duce the number or hours of work, nor could have the least financial ability to cope would do away with the insidious taxa­ you ask for more food. with it. The great majority of our work- tion of inflation itself. They are exam­ "I cannot say anything about political ers and taxpayers fall into these income ples from the real world of people of rights since I am too low down. categories, and unless they save and in- modest means who now suffer needless­ vest our economy will slowly grind to a ly at the hands of a greedy Federal Gov­ INTERVIEW WITH CAMBODIAN REFUGEE IN halt. Unfortunately, the one-two com- ernment. SURIN, THAILAND, CONDUCTED BY AMERICAN bination of inflation and the tax rate I doubt that any Member of this House EMBASSY OFFICE IN JUNE 1978 structure strongly discourage those who of Representatives is willing to stand up Account of Keo are inclined to save and invest those sav- and say that he favors taxation of in­ Keo Roeun, 39, fled to Thailand from Oddar ings in capital assets. · flation-but that is exactly what those Meanchey Province with the same group as There is no question that inflation ac- are doing who oppose my amendment on Mon Sieu. He participated in the interview with Mon Sieu agreeing on details about liv­ counts for a large part of the face value the floor later this week. ing conditions, administration, etc., but of capital gains realized on a personal It is my sincere hope that this body added the following comments: residence, stock and other kinds of in- will act responsibly in bringing about "I saw three villagers taken from Pongro vestment-but, incredibly, when those this important change in the treatment last month for being late !or work. I also saw gains are realized upon the sale of the of capital gains. It is a reform that is villagers from the next collective taken to asset the tax must be paid on both the . fair, equitable-and above all-long over­ fields near Pongro. They were beaten with real gain and the inflation that occurred due.

CHART 1.-Effect of Archer amendment on single-family homes (if CHART 2.-Effect of Archer amendment to index capital gains (if it it had been in effect in 1970) had been in effect in 1960)

National West Philip Morris Loews (10 (10 shares) shares) Purchase: Median single-family home. Price, 1970 Purchase price (actual stock prices (CPI in 1970: 116) ------­ $23,000 $24,300 in June, 1960) ------­ $676.80 $173.80 Sale: Selling price (actual stock prices ln Median single-family home. Price, May, June, 1970) ------­ •2, 178.80 ..1,678. 10 1978 (CPI in May, 1978: 193) ------47,800 66,600 Capital gain realized under present Capital gain realized under present law __ _ 24,800 42,300 law ------1,502.00 1,504.30 Purchase price adjusted for inflation be­ Purchase price adjusted for infla- tween 1970 and May 1978 (multiplied by tion between 1960 and 1970 (mul­ 1.66) as per Archer amendment______38,267 40,338 tiplied by 1.31) as per Archer Capital gain realized under Archer amend- amendment ------886.60 227.70 ment ------15,267 16, 038 Capital gain realized under Archer Difference in capital gain: present law amendment ------­ 1,292.20 1,450.40 versus Archer amendment______9,533 26,262 Difference in capital gain: present law versus Archer amendment __ _ 209.80 53. 90

•Includes effect or 3 !or 1 split in 1966, 2 !or 1 split in 1969. • •Includes effect or 2.5 !or 1 split in 1968, 3.0 for 1 split in 1968.e 25002 EXTENSIONS OF REMARKS August 8, 1978 DRUG USE BY PRESIDENTIAL STAFF to take decisive action on the findings. bring them with you. Was hoping at least SHOULD BE INVESTIGATED This is not a purely personal matters for you bring enough rubles for blanket for straw mattress. Glorious government of the President; it is a matter of national glorious Union of Soviet Socialist Republics concern and his duty to act accordingly is not providing blankets for free." HON. JOHN M. ASHBROOK should be clear to all. Certainly it should "Oh, Sergei, what need have we for OF OHIO be clear to the President.• blankets when we have each other? To wish IN THE HOUSE OF REPRESENTATIVES for blankets is to be so chi-chi and decadent. It is to be like my wicked stepmother. She Tuesday, August 8, 1978 used to sleep on silk and satin sheets." "Is true, Christinka? Silk and satin sheets? e Mr. ASHBROOK. Mr. Speaker, the THE IDEOLOGY OF MATRIMONY Not burlap like in glorious Union of Soviet use of illegal drugs and drug and alcohol Socialist Republics?" abuse are serious problems in all too "Yes, Sergei. It was disgusting. She'd have many American communities and occur HON. EDWARD J. DERWINSKI her maid change them every time she used in some degree in most. The tragic con­ OF ILLINOIS the bed, sometimes three or four times a day." sequences for individuals and families in­ IN THE HOUSE OF REPRESENTATIVES volved are too well known to need further "Yes? Three or four times a day?" elaboration here. There are widespread Tuesday, August 8, 197 8 "And that was just on her yacht. God only knows what kind of self-indulgences she and intensive public and private efforts Mr. DERWINSKI. Mr. Speaker, Col­ practices at her island in the Aegean, or her to prevent such abuse. To be effective, umnist Michael Kilian of the Chicago apartment in Paris, or her apartment in such preventive measures require not Tribune is- a quiet, unassuming, profes­ New York, or her house in Virginia ..." only active support but a good example sorial kind of individual. He is one of "Yacht? Paris? New York?" set by both private citizens and public that publication's in-house intellectuals "Yes, Sergei. And she constantly throws officials who-deservedly or not-are as well as a historian. Mr. Kilian's inter­ these disgusting parties. Caviar. Champagne. looked to for leadership by millions of Lobster." est ranges from tiny free countries such "Is true? Caviar? Champagne?" their fellow citizens. as Iceland to the granddaddy of totali­ "Yes, my darling Sergei, sometimes for That is one reason why the whole Dr. tarian states, the Soviet Union. breakfast. Bourne matter is so damaging. The However, he also delves into the "And gifts, Sergei. My wicked stepmother President's Chief Advisor on Drug Con­ ideology of matrimony which is evi­ is always showering everyone with gifts. Her trol apparently wrote a pres :~ription for denced by his his column of August 3. relatives, her boyfriends ..." a controlled drug using a ficticious name "Is married, your wicked stepmother?" His commentary which follows, analyzes "No, Sergei, not since the death of my for the supposed patient. But transcend­ the recent marriage of Christina Onas­ ing by far the questions raised by Dr. beloved father. I think she was waiting at sis: least until the lawyers finished working out Bourne's personal conduct is the undis­ CHRISTINKA, WHY You NOT DECADENT the settlement." puted allegation by him of widespread LIKE IN-LAWS? "My darling Christinka, I think is best you use of illegal drugs by White House staff (By Michael Kilian) S!:I.Y nothing more about this. Is not good for members. KGB agent to hear. In glorious Union of This goes beyond the issue of what "Oh, Sergei, Sergi, here we are at last in Soviet Socialist Republics, insane asylum is our honeymoon hideaway far off in the wilds very popular. Is very easy to be sent to one kind of example is being set for the of beautiful Siberia." American people-particularly for young by glorious government." "Is true, my little Christinka. Here are we "Why would they think I'm crazy, Sergei? people--at the highest level of Govern­ in beautiful honeymoon hovel in beautiful Because I gave all that up to marry you?" ment. It goes to the issue of the com­ Siberia, with beautiful mosquito bogs and scenic sulfur ·quarry and lovely fertilizer "No, my little Christinka. As good Com­ petency of this administration to conduct munists, that they understand. What they the business of Government, including works all around. How ·nice of glorious gov­ ernment of glorious Union of Soviet Socialist think crazy is why I, as Soviet citizen, marry vital foreign and national security affairs. Republics to provide." you instead of her." Even the most casual student of Amer­ "Oh, Sergei, how cozy it 1s here with just ican Government is aware of the power the two of us ..." of the White House staff, and very often "Yes, my little Christinka, two of us and of members of that staff whose names three KGB agents outside." IN MEMORY OF WILLIAM and responsibilities are unknown to the "It's such a lovely hovel, so real, so pro­ O'CONNOR, FIREFIGHTER American people, in shaping foreign and letarian, so unpretentious!" domestic policy. If Dr. Bourne's startling "Is unpretentious indeed, my little Chr1s­ allegations are even partially true the tinka. Straw mattress, dirt floor, wooden matter calls for the most thorough inves­ stools. Only soft thing in place is KGB agent HON. LEO C. ZEFERETTI under bed. Is reminding me of two-room OF NEW YORK tigation by the President and by the apartment we will live in with my Il\Other Attorney General. in Moscow. How nice of glorious government IN THE HOUSE OF REPRESENTATIVES Apparently the President himself does of glorious Union of Soviet Socialist Re­ Tuesday, August 8, 1978 give credence to Dr. Bourne's allegations publics to provide." "Oh, Sergei. What a glorious government e Mr. ZEFERETTI. Mr. Speaker, last concerning use of illegal drugs by the the glorious government of your glorious week, tragedy took the lives of a num­ White House staff. He has issued a Union of Soviet Socialist Republics is! Life ber of courageous firefighters in Brook­ strongly worded memorandum to his top in your country is so great, so proletarian, so lyn, N.Y. As the roof of a supermarket staff on the subject. But, Mr. Speaker, unpretentious! There is nothing of the dec­ suddenly erupted in a mass of flames this situation at the very center of power adence of the chi-chi world of the Beautiful and collapsed, the city of New York lost and responsibility in our Government People and the Jet Set. In your country, six brave men. calls for more than a memorandum. money doesn't matter at all." "Is true, my darling Christinka. Is no Sometimes we take for granted those This is not the issue of Ambassador Beautiful People in glorious Union of Soviet public servants including law enforce­ Young's halucinating-however damag­ Socialist Republics. And in country where ment personnel who perform extraor­ ing his statements have been-over for­ no one has money, is true money doesn't dinary services in our neighborhoods. eign policy or domestic justice. This is matter at all." Always, after an unfortunate incident an issue of the fundamental competency "You won't believe this, my darling Sergei, such as the one our city has witnessed, of highly-placed individuals to advise but people wondered how I could give up my do we realize the exceptional services the President of the United States and millions and marry you. They said you rendered by these brave men. to conduct in his name policies which weren't even handsome, that you were bald­ ing and had bad teeth. What they didn't One of the dead firefighters was a are vital to the security and well-being understand is that I love you for yourself, constituent and neighbor of mine. Fire­ of the American people. just as you love me for myself, and not for man Fourth Grade, William O'Connor, I call upon the President to at once my millions." lived at 70 Prospect Park. S.W. Like his undertake a thorough investigation of "My dearest Christinka, is impossible to father, Mr. O'Connor made his life-long the matters alleged by Dr. Bourne and love you for your millions since you didn't occupation that of firefighting and at August 8, 1978 EXTENSIONS OF REMARKS 25003 the age of 29, had a promising and pro­ Resolution 1063 which contains a two­ join the millions of people throughout ductive future ahead of him. This dis­ thirds requirement for final passage. the world in mourning the death of Pope aster has left his wife, Louise to care This was not a debatable motion and it Paul VI. I further join the world in pray­ for their three young children and has failed because some Members were not er that his goals and ideals will someday caused his neighbors, friends, relatives cognizant of my purpose. be achieved.• as well as his coworkers, to mourn his This procedural approach was required untimely passing. because the gentleman from California This episode marked the most griev­ and manager of the bill, Mr. EDWARDS, ous loss of firefighters in a single acci­ refused my request to permit 1 hour of TRAVESTY OF JUSTICE dent in New York City in more than 12 debate on this difficult issue prior to con­ years. The city, State, and indeed the sideration of House Joint Resolution entire Nation was shocked and saddened 638. HON. BOB WILSON by this ill-fated tragedy. William We are faced with a similar situation OP CALIFORN~ O'Connor's death will be felt by those when we begin floor consideration of the IN THE HOUSE OF REPRESENTATIVES around him and he, along with his five extension. The Rules Committee, on an Tuesday, August 8, 1978 colleagues who perished, will be remem­ 8-to-8 vote, refused an amendment bered by an.• which would have allowed debate on an e Mr. BOB WILSON. Mr. Speaker, I "up-or-down" vote upon the two-thirds would like to take this opportunity to question. The only way we can approach direct my colleagues' attention to an im­ this issue is through the procedural move portant endeavor by the Society of For­ ERA EXTENSION TWO-THffiDS OR of defeating the previous question and mer Special Agents of the FBI on behalf MAJORITY amending the rule to make in order a of three fine Americans, L. Patrick Gray vote upon the question of two-thirds. III, W. Mark Felt, and EdwardS. Miller. This issue is not open and shut as the I wholeheartedly agree that the Justice HON. HAROLD L. VOLKMER proponents of House Joint Resolution 638 Department's indictment of the gentle­ would have you believe. The 8-to-8 vote men is a travesty of justice. OF MISSOURI in the Rules Committee shows a sharp Prudent and wise men recognize the IN THE HOUSE OF REPRESENTATIVES difference of opinion. injudicious nature of prosecuting those Tuesday, August 8, 1978 Even if you do not agree with my view who were merely performing their duties that the constitutional process requires to the best o.f their ability. Not only were e Mr. VOLKMER. Mr. Speaker, within these actions the result of their personal a week the House will consider the rule a two-thirds majority for final passage, I hope a spirit of fairness and a belief in judgment, they resulted from the judg­ for the consideration of House Joint ment of their superiors and, indeed, the Resolution 638, commonly known as the the democratic process will allow you to support my attempt to let this important opinion of the Nation. When the be­ extension of time for the States to ratify havior of an extreme few, such as the the equal rights amendment. constitutional issue be decided by the full House.• Weathermen underground, threatens When the rule comes up for considera­ our Nation's security, then the line must tion, I ask, in all fairness, that you vote be drawn. These three former FBI agents against the previous question so that an and others like them, acting with the amendment may be offered to the rule. WORLD MOURNS DEATH OF POPE PAUL VI authority of their superiors, were carry­ This amendment would make in order ing out this Nation's mandate and any a vote by the House on whether or not effort to prosecute them for doing so is a two-thirds majority is required for HON. LAWRENCE COUGHLIN both unwise and inherently unfair. W!th final passage of House Joint Resolution this in mind I recommend to my col­ 638. OF PENNSYLVANIA leagues the following resolution adopted As my past record shows, I have IN THE HOUSE OF REPRESENTATIVES by the Society of Former Special Agents always been a supporter of the equal Monday, August 7, 1978 of the FBI: rights amendment and will continue to RESOLUTION do so. My opinion on this constitutional e Mr. COUGHLIN. Mr. Speaker, I join my colleagues in expressing my profound Be it resolved that the Society of Former issue is based upon extensive research Special Agents of the FBI request that the by myself and my staff, and is supported sorrow over the death of Pope Paul VI. federal indictments of L. Patrick Gray III, by several noted constitutional experts: As a man of peace and love, Pope Paul W. Mark Felt, and Edward S. Miller be dis­ Erwin Griswolc!, former Solicitor General will be missed not only by Roman Cath­ missed by the Attorney General as not being of the United States and former dean of olics, but by all people whatever their in the best interests of the American citizens the Harvard Law School; Charles L. religious conviction. or of this nation; and Black, Jr., Sterling professor of law, Yale The Pope, known for his wisdom and Be it further resolved that the policy of intelligence, was repeatedly sought out the Attorney General, which has denied legal ~w School; Prof. Thomas I. Everson, representation by the Department of Justice Lines Professor of Law Emeritus, Yale by world leaders for his advice and or reimbursement for the legal expenses ior Law School, and Prof. William Van counsel. This unprecedented exposure to private counsel in the defense of employ­ Alstyne, College of William and Mary, the world led the Pope into areas of lead­ ment-related activities, be reversed and such Marshall Wythe School of Law. ership traditionally not considered relig­ legal expenses paid; and This issue was not decided on an ious ·but which, he insisted, should be the Be it further resolved that the Society up-and -down vote in the Judiciary essence of all religions-peace among na­ continue to extend its full facilities, includ­ Committee because of procedural prob­ tions. Through his extensive travels and ing the use of its Special Agents Legal Fund, the establishment of diplomatic ties be­ Security National Bank, 2000 M St., N.W., lems. The two-thirds requirement must Wash., D.C. 20036, to those present and for­ be located in the resolving clause of the tween the Vatican and more than 100 mer FBI Agents who have been indicted or resolution, yet the resolving clause can­ nations, Pope Paul established a place in threatened with criminal or other action, as not be amended according to our rules. the civil world for tne Roman Catholic a result of their official investigation of ter­ Subsequently, House Joint Resolution 638 Church. rorist activities; and does not contain a two-thirds require­ In his crusade for world peace, the Be it further resolved that the Society in­ ment. For the same reason we need to Pope sounded the call for improved hu­ sist that a full and complete investigation amend the rule to get the question before man rights and living conditions for the be conducted to ascertain the identities and world's underprivileged people. Believing involvement of all higher authorities in the the House. Department of Justice and other branches I attempted to bring the issue before in the power of world opinion, the Pontiff of government who had knowledge and ap­ the Judiciary Committee by urging de­ used every possible means to call atten­ proved of FBI procedures; and feat of consideration of House Joint Res­ tion to these most pressing problems. Be it further resolved that the Society en­ olution 638. H successful I would have No other Pope traveled so long and so dorse the Congressional Resolutions intro­ moved for consideration of House Joint far for peace and justice on Earth and I duced by Senator Hayakawa and Represent- 25004 EXTENSIONS OF REMARKS August 8, 1978 ative Zeferetti, and commend them to all Unfortunately, inflation, combined down for a chat. He likes to keep up with members of Congress who are concerned with the higher social security taxes American politics. "I see by your paper that about the future security of our country enacted last year to maintain the sol­ a congressman by the name of Rhodes from and the effectiveness of the FBI; and Arizona wants to cut taxes 30 per cent," he Be it further resolved that this Resolution vency of the social security trust fund, said the other day. "Mr. Rhodes says that he be forwarded to the President of the United will offs·et the decreased income taxes of wants to show the country which party States, the Attorney General of the United H.R. 13511. stands for a real tax cut, and which one is States, members of the United States Senate, For this reason, I support an amend­ the party of wild spending," the man from members of the United States House of Rep­ ment by Congressman RICHARD GEP­ Mars went on. We agreed that Mr. RhOdes's resentatives, and released to the news media. HARDT to provide both employees and intentions seem to lie in exactly that direc­ President, FrankL. Price, San Diego, Calif. tion. President-elect, Charles H. Stanley, N. employers with a tax credit equal to 5 percent of the social security taxes they "Now, the last time I was here," said the Little Rock, Ark. Martian, "you explained to me that the Re­ Immediate past president, James L. Mc­ pay. This should help compensate for publicans are the party of low taxes, balanced Govern, Atlanta, Ga. the large social security tax increases budgets and self-reliance, which means let­ Secretary, Henry W. Anderson, Milford, which will .take place in the coming ting people spend their own money instead Conn. years, and will allow more taxpayers to of having the government spend it for them. Treasurer, Francis P. Grealy, Crestwood, realize a net tax decrease in 1979. This· They also favor business prosperity, and a N.Y. provision will also offset inflation caused strong national defense." We said that Mr. Northeast region vice president, Arthur Rhodes himself couldn't have put it more P. Duffy, Garden City, N.Y. by the fact that the employer's share of the social security taxes almost always precisely. Mid-Atlantic region vice president, Lewis "Ooming in on the saucer," he said, "I was H. Bunker, Bethesda, Md. end up in the price of the goods or serv­ looking at those government statistics you Southeast region vice president, Joseph A. ices being produced. gave me the last time I was here. I remember Sizoo, Whispering Pines, N.C. I will also support an amendment by that you told me the White House went from North Central region vice president, Congressmen JAMES CORMAN and JOSEPH one party to the other in 1969, and went the George J. Frye, Jr., LaPorte, Ind. FISHER, which will provide greater tax other way in 1977. But I've forgotten which South Central region vice president, G. cuts to thos·e earning $50,000 and less. party was in power from 1969 to 1977." Lawrence Keller, Wichita, Kan. "You can figure it out," we suggested. "You This am~mdment retains the general know the parties' policies, and you know Western region vice president, Asa s. tax credit-$100 per person or 2 percent Bushnell III, Tucson, Ariz. what happened to the economy. Put it to­ of the first $9,000 of taxable income­ gether." Members-at-Large, John K. Burge, Kan­ which was deleted by the Ways and sas City, Mo., Warren L. Love, Arlington, The Martian poked for a moment through Means Committee. Lower-income indi­ the tables at the back of the Economic Re­ Va., James E. Hastings, Miami Shores, Fla.e viduals will also receive additional tax port, and said: "The really striking thing cuts. Furthermore, while retaining the about your federal budgets from 1969 to 1977 features of the committee bill which will is that they rose like rockets. They rose much lower capital gains taxes for moderate­ faster than your economy as a whole. You THE REVENUE ACT OF 1978 must have been in the hands of the big income taxpayers, the amendment spenders. Taxes didn't go up as fast as in­ eliminates the provisions which would comes, but they went up. I see that you slid provide a windfall almost exclusively to into a big recession in 1974-75, and you used HON. EDWARD W. PATTISON the very wealthy few who do not pay any the biggest budget deficit in your peacetime OF NEW YORK income taxes at all as a result of vari­ history to pull out of it. The government IN THE HOUSE OF REPRESENTATIVES ous "tax shelter'' schemes. must have been run by those people you call tlie Keynesians-the deficit spenders." We Tuesday, August 8, 1978 The Gephardt and Corman-Fisher acknowledged that truth, and told him to e Mr. PATTISON of New York. Mr. amendments take a fundamentally take a look at defense. Speaker, on Thursday, the House is different approach from the bill re­ "Defense spending, when you take out in­ schedu:ed to begin debate on H.R. 13511, ported out by the Ways and Means Com­ flation, drops steadily after the 1968 election the Revenue Act of 1978, which provides mittee, and I believe they greatly im­ and starts to turn around only with the 1977 a $12.8 billion tax reduction for indi­ prove it. However, even if the House re­ budget," said the man from Mars. "Now it's jects both of these amendments, I will rising quite fast." We pointed out that the viduals and a $3.5 billion reduction for country had been winding down a war in the corporations in fiscal year 1979. While I still favor passage of the Revenue Act of early 1970s. do not agree with every provision of this 1978. While I had hoped for more exten­ "Yes," said the Martian, "but those defense legislation, I feel that the bill, as a whole, sive tax reform this year, H.R. 13511 cuts weren't passed back to the public in merits our support. will at least provide some relief to the lower taxes. Instead, direct government pay­ Even though their incomes have kept American taxpayer in 1979.e ments to individuals increased at the fast­ est rate in all of your history. Soci·al Security, pace with inftation, many taxpayers medical care, welfare benefits, all those var­ have found themselves in higher tax ious entitlements-why, by 1977 just about brackets. Thus, their real incomes have half of your federal budget was a huge in­ declined. To help alleviate this problem, THE MARTIAN AND MR. RHODES surance operation paying monthly checks the Revenue Act expands existing tax to tens of millions of people." We told him to brackets by 6 percent, so that individuals take a look at the figures on business profits. with rising incomes will not find them­ HON. JOHN P. HAMMERSCHMIDT "Terrible," said the man from Mars. "When selves in higher tax brackets automati­ OF ARKANSAS you discount inflation, you see that corporate cally. IN THE HOUSE OF REPRESENTATIVES profits were lower in 1977 than in 1969, al­ For taxpayers who do not itemize their Tuesday, August 8, 1978 though the economy had grown by one-third. deductions, H.R. 13511 increases the Speaking of inflation, by the end of the last standard deduction for single persons e Mr. HAMMERSCHMIDT. Mr. Speak­ administration you were in the worst infla­ from $2,200 to $2,300, and for married er, admittedly, amidst the clamor that tion you've ever experienced. Also, the doUar couples from $3,200 to $3,400. exists within the legislative process, it is had been devalued twice. The party in power easy for even editors to miss the point on during those years must have given a pretty The personal exemption is raised from low priority to a sound and stable currency." $750 to $1,000 per dependent, and as is "who's in charge.'' I thought the following editorials en­ All true, we ruefully conceded. Then we the case in the current law, that figure asked him to put it all together, and tell us is doubled for dependents who are over tiled "The Martian and Mr. Rhodes" who was in the White House during those 65 or who are blind. which appeared in the Washington Post, years from 1969 to 1977. I also favor the cut in the corporate would be of interest to my colleagues. "The Democrats, obviously," he said. "But tax rate, and the extension of the in­ [From the Washington Post, July 2, 1978] there was a change last year, so now theRe­ vestment tax credit. These measures THE MARTIAN AND MR. RHODES publicans must be in and your republic is should provide a badly-needed stimulus There's a man from Mars who occasionally safe again." to capital formation. parks his flying saucer on the roof and drops "You've got it exactly right," we said. August 8, 1978 EXTENSIONS OF REMARKS 25005 (From the Washington Post, July 9, 1978] day, the world lost one of its truly great Vietnam, and Northern Ireland. He also "THE MARTIAN AND MR. RHODES" leaders. Unlike most of the other great sought to promote the unity of man by There's a man from Venus who sometimes leaders of today, Paul VI did not receive internationalizing the College of Card­ pa.rks his flying saucer in the patio of the his influence through military might or inals and the Curia, and by encouraging Rayburn Building and drops in for a friendly by being the head of a nation with huge ecumenical movement::; such as his visits visit. Since he is the chairman of the Faculty economic resources. Rather, his leader­ with the leaders of the Greek Orthodox of Interspatial Political Science at the Uni­ ship was based on the force of peace and and Anglican Churches. He tried tore­ versity of Northern Venus, he likes to talk politics. conscience. During this time of mourn­ mind us that despite our differences, we He dropped in today-an incensed Venu­ ing throughout the world, I believe that are all members of the Family of Man, sian. He had stopped to buy Sunday's Wash­ it would be wise for all of us to reflect and that we should deal with each other ington Post because he admires the excellence on the message Paul VI sought to deliver as if each of us is a part of that large of the columnists. By mistake, he first turned to our present day society during his 15- family. to the editorial page, where he read an edi­ year reign. As a Catholic, I am especially sorrow­ torial entitled "The Martian and Mr. Rhodes" In an era in which many are ques­ ful at the death of Pope P~, ul VI. I be­ (July 2). It had sent him up the wall. tioning the morality that to a large ex­ I, of course, had my own reasons for dis­ lieve, though, that all of us, whether agreeing with the editorial, but I wanted my tent forms the basis of our society, Pope Catholic or not, sho·.1ld be saddened at Venusian friend's point of view. So I said, Paul continually sought to uphold and the passing of this great man of peace "What's the matter with it?" strengthen our ethical values and prac­ because the basic ideas he stood for are He replied, "Why, my friend from Mars, tice. He spoke out in favor of the under­ ones which our society desperately needs who is a professor of Interspatial Political privileged, made tireless efforts to pro­ today. Pope Paul VI truly was a man for Science at the University of Central Mars, mote world justice, and warned against our times.• was obviously confused. He kept identifying the evil of political repression. He urged the level of debts and taxes with the political us not only to believe that it is right to party in control of the White House." love our neighbor, but to actually put "Even the lowest ranking student in first­ that love into action. · year Earth Political Systems knows that in MARILYN COLLINS, ADMINISTRA­ the United States, the president doesn't levy While society's huge, impersonal insti­ taxes or appropriate funds, the Congress tutions continue to grow larger in com­ TOR OF PLEASANT MANOR does! And, everyone on Venus knows that the plexity and more distant from the peo­ NURSING HOME, SPEAKS OUT ON U.S. Congress has been under the control of ple, the Catholic Church under Pope NURSING HOME CARE the Democratic Party tor the past 25 years. Paul became more open and personal. Spending, debts, inflation are Democrat re­ Paul effectuated reforms in the church sponsib1llties !" When I reminded him that the executive bureaucracy which opened up the church HON. OLIN E. TEAGUE department executes the laws of Congress, he to a much greater degree than it had OF TEXAS turned a withering one-eyed Venusian stare previously been. He encouraged liturgi­ IN THE HOUSE OF REPRESENTATIVES on me and said, "Have you forgotten that a cal reform so that worship services could Democratic Congress lmpused a Budget and be understood by the people and be Tuesday, August 8, 1978 Impoundment Act on a Republican president meaningful to them. His historic world­ • Mr. TEAGUE. Mr. Speaker, anyone t>f the United States that mandated that he wide trips also brought the church who has had to place a loved one in a spend every dime that Congress appropri­ closer to the peonle and symbolized its nursing home is always concerned for ated? Can you deny that by doing this, the Democratic Congress assumed complete re­ interests in their lives. the care which he or she will receive. sponsibil1ty for the fiscal affairs of the United At a time when the world is becoming In addition, all know that it is a most States government?" increasingly secularized and ever more expensive undertaking. Because of these "Undeniable," I replied. materialistic. Pope Paul sought to re­ concerns, nursing homes have come in Having completely destroyed the logic of mind us that there is much more to life for much malignment over the years. his Martian colleague, wht> had deduced that than material goods. Instead of concen­ Under leave to extend my remarks in Republlcans must be in control of the U.S. trating our thoughts on the minor, every­ the RECORD, I wish to include the re­ government in all its departments, my Venu­ sian friend became Wistful. day struggle for such things as money marks of Marilyn Collins, administrator "You know, I regret this," he said. "I had or power, Paul VI urged us to consider of Pleasant Manor Nursing Home of recommended that the University of North­ the larger, spiritual dimension of man. Waxahachie, Tex., located in my dis­ ern Venus bestow an honorary doctorate in He provided a personal example of this trict in which she very adequately sets Interspatial Political Science t>n my Martian style of life through his dedication and out the other side of nursing home friend. It is now my sad duty to report the devotion to the more important aspects care. obvious defects in his knowledge of the u.s. ~li~. . The remarks follow: government, and insist that he take a re­ fresher course in Earth Political Systems be­ In an age in which change is occurring THE "OTHER SIDE" OF NURSING HOME CARE fore receiving his doctorate. I regret this." so fast that it often results in psycho­ (By Marilyn Colllns) I said, "I understand your regret. Perhaps logical problems, Paul VI was a voice Nursing homes have become a political your Martian friend wt>uld feel better if you of moderation. He fully realized that the football and the personnel who work in invited his friend on the editorial board of church must in many ways change with them are dealing with the public con­ The Washington Post to join him in that re­ the times, and he steadily brought about science. Politicians who make the laws and fresher course. He obviously needs it, too." quite a few changes during his reign. He regulations have oft-times never visited a My friend brightened at this suggestion. refused, however, to allow changes to nursing home let alone worked in one. Most "Perhaps," he asked as he prepared to take of us have a subconscious fear of growing his leave, "&>me of your Democratic col­ take place so fast that they would create old. To see a home full of constantly sick, leagues in the Congress might also be inter­ disharmony and fear among the people. feeble, incontinent, or totally senile elderly ested in such a refresher course?" Whether or not some changes may have fills us with horror and fear, for we see It was my turn to smile. been delayed too long or implemented ourselves in 20 or 30 years time. JOHN J. RHODES, too quickly, he correctly realized the Those who look deeper see the individuals U.S. Representative, need which all people have for an iden­ and the character. The senile patient who is House Minority Leader so gentle that you are compelled to protect .e tity based on traditional roots; and the her. The lady who has such a keen sense of need for moderation in altering that humor that it brightens your day-the pa­ identity. tient who flays like a wild cat, with such a A MAN FOR OUR TIMES Finally, Mr. Speaker, in an era of gleam in his eye, that you have to stand back growing national selfishness and petty and admire the sheer guts and determina­ tion. We see their trials, tribulations and HON. RONALD A. SARASIN nationalistic arguments, Pope Paul achievements, their fears, pettiness and joys. OF CONNECTICUT VI stressed the unity of mankind. He We work with people and their dally lives IN THE HOUSE OF REPRESENTATIVES called on the wealthier nations of the are ours. world to share greater amounts of their Tuesday, August 1, 1978 Let's look at facts: Probably around 80 food and other resources with those na­ percent if our elderly in nursing homes are e Mr. SARASIN. Mr. Speaker, with the tions of poorer means. He pleaded for the on the Medicaid program which pays a daily sudden passing of Pope Paul VI on Sun- end to conflicts such as those in Biafra, rate of $18.91 per day, Type II patient ancl 25006 EXTENSIONS OF REMARKS August 8, 1978 $20.82 per day, Type III patient. The last dents on their day off-provide personal A toxic-chemical fire-retardant, a powder hotel I stayed in cost $40 per night. items out of their own income, take clothes known as polybrominated biphenyl, or PBB, For half this cost, we are expected to home to mend, bring presents for birthdays had been mixed inadvertently into cattle supply 24-hour professional care, sufficient and Christmas-nurses pool their resources feed that Mr. Halbert bought. It was soon personnel to bath, feed, wash and clean, to buy insulin or medication that the patient discovered that hundreds of other Michi­ dress and serve meals and snacks, provide cannot· afford. I have seen half a dozen em­ gan dairy !arms also had received tainted specialized diets, food, dietary supplies, ployees stop what they are doing and watch feed. And through the food products !rom housekeeping, laundry, maintenance, utlU­ with breath suspended while a patient takes those farms, PBB had passed into the diets ties, taxes, insurance, medical supplies and his first step after an illness-the joy of of most Michigan residents. equipment, activities, social services, spe­ achievement is shared by all. I have seen The accident, which attracted national at­ cialized services and clerical and administra­ them cry when a patient dies, and spend tention, produced a monstrous tangle of tive services. Costs are going up continually their evening off at the bedside of a man problems that still defy solution. For in­ and as in every industry the first cut backs dying of emphysema holding his hand. To me stance, despite continuing investigations by are usually labor. these are the positive things of a nursing health researchers, nobOdy yet knows what Add to this the stringent standards that home-the things the general public never dangers the chemical poses to people who nursing homes have to adhere to, and I am see and never read about and the inspectors unknowingly ate it (but a study of Michigan amazed. tQ.at it is only 4 percent of nursing never know because we did not sit down and !arm families exposed to PBB indicated that homes in Texas that are not in compliance. document them! e it may be tied to various ills ranging from Rules and regulations, if kept to a mini­ fatigue to loss of memory). Nor is anyone mum, are a must, but when you try to handle even sure how to dispose safely of unusable, regulations from County, State, Federal and PBB-contaminated carcasses of thousands of Life Safety Codes-all with conflicting re­ PERSISTENT POISON Michigan cattle still awaiting destruction. quirements and interpretations, and the LULL BETWEEN STORMS reams of paper work attached, you stifle ini­ tiative, lose imagination and, worst of all, HON. WILLIAM D. FORD After an initial flurry of publicity about make a person afraid to use their own judg­ his chemical detective work, however, Mr. ment. OF MICHIGAN Halbert's name soon dropped from the head­ A doctor once told me that the American IN THE HOUSE OF REPRESENTATIVES lines. Using money from insurance settle­ ments, he quietly set about rebuilding his Health Care System was based on the prece­ Tuesday, August 8, 1978 dent that those with the most knowledge ravaged dairy business. He replaced his cows; give the least care. This is particularly true • Mr. FORD of Michigan. Mr. Speaker, about 75 had died because of PBB contamina­ in nursing homes. Physicians, consultants our Government has developed a plan tion, and the remaining 725 had been quar­ and professional nurses are so bogged down antined and then destroyed. And, !or a to deal swiftly with natural disasters, while, life !or Mr. Halbert and his family in the paper work-writing progress notes, but not with chemical contamination nurses notes, health care plans, reviews, returned to normal. documenting medications and treatments, disasters; yet, the potential for chemical But PBB has turned out to be an unex­ diets, clothing lists, recording observations contaminations in this country is great. pectedly tenacious foe, and now it has struck incidents, documentation on personnel, The major fear of any chemical con­ the Halbert !arm again. Over the past sev­ etc .... All required by standards that the tamination is the possible effects it may eral months, the chemical has shown up in time left for personal care is very limited. have on the food chain. Once the chain Mr. Halbert's new herd. If a . patient goes to the hospital, there is infiltrated, the contamination can This time, the 33-year-old farmer can seems to be an understood rule that the easily spread, affecting millions of Ameri­ easily trace the source of contamination, familles will help. They sit at bedside day though the answer is hardly a source of cans. This occurs when potentially toxic comfort: His own farm-land and build­ and night, offer fluids, feed, change, call the chemicals never intended to be used in nurse when needed, manicure, brush and ings-appears to be the culprit. Despite ex­ comb hair, turn patients when required and agriculture are placed in the food chain tensive clean-up efforts after the accident, do the laundry, if necessary. Yet these are through animal feed or crops. tests indicate that traces of PBB persist over the most common complaints received from I believe the following article from the much of his property. familles with patients in the nursing home. August 1, 1978, edition of the Wall Street Now Mr. Halbert is desperately trying to I have often wondered with hospital costs Journal outlines some of the drastic ef­ scour out the remaining contamination, but being what they are, why a so much higher fects of a chemical contamination and he concedes that PBB may finally be beat­ standard is expected of nursing homes. ing him. "lt seems like a perpetual circle the need for a mechanism to provide that can't be broken. I may just have to ad­ I don't mean to criticize anyone and am prompt Government action in the case of not going to say the system is perfect­ mit my land is poisoned," Mr. Halbert says. obviously there is room for improvement. future contaminations. Thus, the Halberts are even weighing the But, constant decrying of nursing homes and Mr. Speaker, Congressman RuPPE and painful possib1llty of selllng the farm, which more red tape is not the answer. We need to I plan to offer an amendment to the has been in the family !or nearly 40 years. increase professional care-recruit more Toxic Substances Control Act, H.R. OTHER FARMS AFFECTED trainee aides per patient. We could even 12441, which will establish the needed Although it's probably little solace, Mr. ~erve gourmet meals on a silver platter-but mechanism to promptly provide assist­ Halbert once again has company in his it all costs money and eventually comes out ance to innocent victims of toxic chemi­ plight. State agriculture officials already of the taxpayer's pocket. Another alternative have found 10 other !arms with similar re­ would be more community involvement­ cal accidents. The bill we intend to contamination problems and are checking vounteers similar to the "Candy Stripers" in amend is currently pending before the others. hospitals, who could lend a helping hand. House Rules Committee. The text of our Whatever the eventual scope, the recon­ We need to decrease the unnecessary paper amendment is printed in the CoNGREs­ tamination problem provides a sobering re­ work and have a lot !ewer and more realistic siONAL RECORD Of August 4, 1978, on page minder of the unforeseen consequences that regulations. 24498. ·can arise, even years later, !rom an indus­ The abuse and neglect law is beyond my The article follows: trial-chemical disaster like the PBB acci­ comprehension. I have been an administrator dent. For the problem currently !aced by for 8 years and can hone"tly state that I have PERSISTENT POISON: MICHIGAN DAmY Mr. Halbert and other farmers arises !rom never seen a case of employees abusing pa­ FARMER WHO IN 1974 FOUND PBB IN COWS a pecullar combination of the laws of nature tients. I have seen numerous cases of patient Now FINDS HIS NEW HERD CONTAMINATED and the lawmaking of government. abuse to employees! Patients who are con­ (By John R. Emshwiller) When the accident was uncovered in 1974, fused and senile wm often become violent BATTLE CREEK, MICH.-Frederic Halbert little was known about PBB. However, sci­ and hit, fight, kick, bite and scratch. Cut can unhappily confirm that lightning does entistg now know that it is an extremely sta­ lips, broken ribs, black eyes, bruises, pulled sometimes strike the same place twice, ble and long-lived substance that will prob­ hair and verbal abuse are an occupational In Mr. Halbert's case, it first hit nearly ably linger in the environment, or the hazard. five years ago, in the form of a mysterious human body, !or years. "Once it gets out I believe that the vast majority of people ailment that sickened and in some cases there, it's impossible to clean up com­ who work in nursing homes discover· it is killed cows on his dairy farm near here. For pletely," says George Fries, a federal re­ more than a job-those who do not have the nearly nine months, Mr. Halbert frantically searcher who has studied PBB. interest and patience never e-eem to last. searched !or the cause. When he finally Worries over those lingering molecules of Benefits and wages are a minimum in this identified it, the one-time chemical engi­ PBB have sparked a major public-health industry and we get our rewards !rom the neer had almost single-handedly uncovered controversy in Michigan. To clean up Michi­ affection and confidence that our patients one of the nation's worst agricultural gan's food supply, state officials quarantined place in us. I have seen employees visit resi- disasters. and destroyed tens of thousands of head ot August 8, 1978 EXTENSIONS OF REMARKS 25007 livestock. From the beginning, though gov­ of farmland that he owns with his father 4 edition of the Washington Post: "435 ernment regulators allowed food products and brother. Indeed, Mr. Halbert frets that Secretaries of State Too Many." with relatively low levels of PBB to be sold, even if the family wanted to sell the farm, it The editorial follows: on the assumption that tiny amounts of the might not be able to find a buyer. "It chemical aren't dangerous. might not take a fool to want it, but he [From the Washington Post, Aug. 4, 1978] 435 SECRETARms OF STATE TOO MANY RULES TIGHTENED would certainly have to be a raving opti­ mist," Mr. Halbert says. But work by some researchers indicates The mauling the House has been adminis­ that even minute quantities .of PBB could WORRmD NEIGHBORS tering to selected bits of the administration's harm human health. So late last year, in re­ Already, word of the recontamination foreign policy is a disturbing thing to behold. sponse to a rising public outcry, the state problem has strained relations with neigh­ To be sure, the House did at least one major legislature slashed the PBB level allowed in bors. "One is worried that dirt blown from responsible deed by ending the Turkish arms dairy cattle to 20 parts per billion in animal our farm is contaminating his stream and embargo-a step that puts the Turks under fat from 300 parts per billion. It also ordered killing some ft.c;h. So he is having the fish an unavoidable obligation to make possible a the state agriculture department to test tested for PBB," Mr. Halbert says, adding, fair settlement on Cyprus. But that was done Michigan dairy herds for remaining traces "After a while you feel like you are working in thoug'htful response to a well-debated, of the chemical. on a place that is radioactive." carefully studied administration proposal, And that's when Mr. Halbert's new prob­ Nor can Mr. Halbert hope for much relief which, in turn, was based on a feeling for the lem surfaced. Tests show that many of his soon. The state reimburses him for cows situation in all its complexity that only a newly acquired animals exceed the new that it takes away. It a_lso promises to study president and his diplomatic advisers can PBB limits. The state has already begun the recontamination problem and what might claim to have. In foreign aid, of which we quarantining some of the animals and tak­ be done about it. But nobody seems opti­ have spoken separately and on several sub­ ing them away to be killed. mistic. "I wish there were a quick, surefire stantive issues pertaining to particular coun­ Mr. Halbert finds this turn of events par­ solution for this, but there isn't," says Ken­ tries, the House has acted with deplorable ticularly disheartening beca'l'Se after the ac­ neth Van Patten, who heads the state's spe­ indifference to the real merits of the matters cident he tried hard to protect his farm cial "PBB unit," which monitors the food at hand. from further PBB problems. When buying coming off Michigan farms. We reier specifically to the readiness of the House to legislate on the floor without sifting his new herd, for instance, Mr. Halbert Mr. Halbert thinks that some help may brought in most of the animals from Wis­ proposals through the committee system, finally have to come from a court of law. He which at least gives legislators the opportu­ consin, Iowa and Jndiana. "I wanted to make is suing the companies res'"lonsible for the sure they hadn't been exposed to PBB," he nity for study and debate and lets the execu­ initial feed mix-up that led to the PBB acci­ tive branch make its case and muster its says. dent. Mr. Halbert is seeking damages­ Mr. Halbert also tried to give his new troops. The Turkish question went through amount unspecified-for his property, and the proper process, as did the Mideast arms herd a clean home. He purchased a high­ says he may eve'ltually try to ~et the com­ pressure steam wa<:her for the barns and package and, of course, the Panama Canal panies to buy the farm. "I don't want sym­ treaties; all ended in administration vic­ bins where the tainted feed had been stored pathy," Mr. Halbert asserts, "I just want to He put down new concrete to cover some tories. be able to live without this knife in my This week, however, policy amendments, areas, and stopped using a 15-acre pa~ture back." e where the "hot" cattle, as Mr. Halbert calls hastily contrived and poorly constructed on those initially contaminated, had been kept. the floor, carried on at least three issues. One, the amendment halting arms deliveries to PERVASIVE PROBLE~ FOUR HUNDRED THTRTY -FIVE SEC­ Chile until it extradites three officials in­ These efforts obviously fell short, Mr. Hal­ RETARIES OF STATE TOO MANY dicted in the murder of Orlando Letelier, was bert now concedes. Today, tests show traces so patently wrongheaded that it was yanked of PBB in his fields, where PBB-carrying back within hours. An alert Justice Depart­ manure from his original cattle was used as ment pointed out how absurd and provoca­ fert111zer. The chemical st111 111rks in his HON. JOHN J. LaFALCE tive it was to punish Chile for not doing in buildings-it has worked its way into the OF NEW YORK one day what the law allows it two months wood. A dust collector has found PBB even to do. in the farm's air. IN THE HOUSE OF REPRESENTATIVES Two other measures, however, do not lend With all that PBB stlll around, some in­ Tuesday, August 8, 1978 themselves to remedy so easily. On Rhodesia, evitably 1s contaminating his new herd. the House voted to lift trade restrictions by And he wonders how much more may be • Mr. LAFALCE. Mr. Speaker, it is now the end of the year if an elected government finding its way into him and his family unclear exactlv when the House will is installed. That is a blunt formulation that (they all got a dose in the initial accident). resume consideration of H.R. 12931, the tramples on the subtlet.tes that made the Recently the filters from his house furnace Foreign Assi~tance Appropriations Act. Senate's Rhodesia amendment difficult but were tested in a laboratory and found to I hope that the leadership will auickly bearable and even, under certain circum­ show traces of PBB. "It isn't comforting to reschedule consideration of this bill, be­ stances, usable by administration diplomats. think that even while you are sleeping, you cause its passage is imperative. On Syria, congressmen suddenly cut off a aren't away from the stuff," he says. year's worth of economic aid, ostensibly in Mr. Halbert isn't sparing any effort to get However, during last week's considera­ reprisal for the assaults Syria has made on rld of his insiduous enemy. He has torn out tion of the bill, the House adopted anum­ Christians in Lebanon in the course of try­ the floor of one barn that showed evidence ber of very troubling amendments, al­ ing to pacify that torn country. One does of contamination. Another six-acre pasture not have to approve of Syria's Lebanon policy though one of them was quickly over­ to realize that an aid cutoff, on what is. after isn't used any longer for grazing since tests turned at the Justice Department's in­ found PBB in the soil. all, a secondary issue, may jeopardize the sistence. I do not refer to the Turkish basis on which the United States is trying to The farmer has even toyed with some really embargo question which was carefully win Syrian cooperation in the search for a drastic cleaning measures. "We could strip­ Mideast settlement. Even more than on Rho­ mine the topsoil from about 500 acres," Mr. and judiciously treated by the House. desia, the House moved on Syria without Halbert says. But he then relects that idea I refer here to the amendments which displaying the slightest sense of understand­ with a rueful laugh: "That wouldn't be very dealt with Chile, Rhodesia, and Syria. ing of the overall play in that country's rela­ practical. It would leave an awful big pile Among the defects which all of these tions with the United States. or dirt." No better demonstration could be made So far, Mr. Halbert's ab111ty to make a liv­ amendn:ents shared, the paramount must that there cannot be 435 secretaries of state ing from his farm hal'ln 't been hampered be their effect on the foreign policy of on Capitol Hill-or 535. The Senate at least significantly. Because PBB hasn't yet shown this Nation. All three affected very com·­ has recognized-though perhaps fingers up in the mllk from his new cows, Mr. Hal­ plex diplomatic issues which are not sus­ should be kept crossed-that it is both wise ber is free to sell his primary product. ceptible to simplistic solutions. Yet, with and fair to consult the administration even But he worries about the future. The while challenging it. The House, however, highest concentrations of the chemical are little preparatory work, almost no con­ is capable of J1:0ing off half-cocked. Many being found in youn~ animals, which have sultation with the Department of State, members tend to slou!!h off both committee been exposed to PBB from birth. A dairy and a somewhat casual debate, these disclnline and party discioline. anci to see farmer depends on those calves as the ma­ amendments were passed. Thankfully, no difference between doing so in domestic .1or source for reolacing old cows and replen­ matters and in foreign affairs. (Republicans ishing his herd. "Economically, we need one was later rejected, after its ramifi­ s!l.ved the administration on Turkey.) Con­ those young animals to survive," Mr. Halbert cations became clearer. In order to help gressional leadership no longer exists in a says. avoid any further similar episodes, I form that makes close executive liaison very Worse, he thinks PBB already has cut the would like to commend to my colleagues' productive on some of these issues. The value of his biggest asset: the 2,300 acres attention the lead editorial in the August Vietnam-born doctrine of prevaillng con- 25008 EXTENSIONS OF REMARKS August 8, 1978 gressional corresponsibility in foreign policy three-martini lunch, would have made only measure would make the maximum capital can become, at emotional moments, a license half the expenses for a business meal tax­ gains tax apply to only 35 percent of the for irresponsibility .• deductible. The public supports that by a profits the sale of stock and property, and 6 to 1 majority, according to the Roper poll. would exempt entirely the first $100,000 in Carter's program, virtually none of which profit from the sale of a home. remains alive, would have cut taxes by $25 The Roper survey questionnaire listed 11 PRESIDENT CARTER WAS RIGHT ON billion, with 94 percent of the relief ear­ types of tax deductions, exemptions and TAX REFORM marked for individuals and families with in­ nontaxable items permitted und-er persent comes of $30,000 or less. (Because of a rise in tax law, Those interviewed are asked incomes since the proposal was made, had whether they felt each tax break, including HON. HERBERT E. HARRIS II the plan gone into effect now, 88 per cent of the capital gains provision, was reasonable the relief would have gone to such people.) or whether it represent-ed a loophole. OF VmGINIA On July 27, the House Ways and Means Com­ Forty-three percent said they considered IN THE HOUSE OF REPRESENTATIVES mittee approved a $16 billion tax cut, its key the existing capital gains tax provision rea­ Tuesday, August 8, 1978 feature being a reduction in capital gains sonable; 40 percent said it was a loophole. taxes. Under that plan, from 53 to 55 percent Only one other item, the tax-free state of • Mr. HARRIS. Mr. Speaker, I am sad­ of the relief would go to families or individ­ interest from municipal bonds, drew more dened to say that the leadership of both uals with incomes of $30,000 or less. opposition from the public, with 43 percent parties in this Congress has bungled an Barber B. Conable Jr. (R-N.Y.), the rank­ calling it a loophole. In other words, Jimmy issue of great concern to the majority of ing Republican on the Ways and Means Carter could claim from the data that, of Committee, said that the committee's tax all the loopholes that anger people about Americans-the issue of tax reform. proposal "reflects the American people's view the tax system, capital gains is at the top It has become very popular in this of tax reform because it is a tax reduction," of the list. town to attack President Carter on this and that "it helps the middle-class taxpayer Roper concludes from the 43-40 split on issue, or to say that he "misread" the in a manner much more substantial than the capital gains that it is considered by the mood of the American people in calling traditional tax reform bill." public as a reasonable deduction. To others, for smaller deductions for the now-fam­ The second part of that statement may be the margin is so slight that it might appear open to interpretation, since it is not clear to to represent a split right down th-e middle. ous "Three Martini Lunch" and the elim­ In addition, it may be reasonable to as­ It many where "middle class" begins and ends. ination of other loopholes. has become But the first part is bunk. sume that a sizable majority would view the very popular .for Members of this House, The Roper firm interviewed 2,007 adult current congressional proposal as a loop­ and especially for members of the Ways Amerlcans nationwide in May, and found tax hole if they perceive that it would result in and Means Committee to say that what reform considered the third most pressing what Jimmy Carter says it would : "A wind­ the American people really want is a problem in the country, ranked only behind fall for millionaires." whole lot of new tax loopholes to spur controlling inflation and curbing crime. In an interview, Roper himself would not the purchase of stock by business spec­ Lowering taxes was listed toward the bottom, draw that conclusion. He said that the pub­ ulators. at tenth on the list. He seems to be saying about capital gains, As Burns Roper pointed out in an inter­ "Leave it as it is." He feels that the Ways and The following article by Mr. Barry view, that should not be regarded as mean­ Means proposal is closer to public sentiment Sussman of the Washington Post ing that Americans don't want taxes cut. than Carter's original proposal, but that his thoughtfully brings to our attention an They do. In fact, they felt it was much more poll "is not a clear win for Carter on capital important Roper opinion survey which important to keep Carter's full $25 billion gains, and not a clear win for Congress confirms the folly of congressional foot­ tax cut than to hold the line on taxes and either." dragging on tax reform. It confirms that the national debt. "I think there is a desire Roper, who conducted the study for the for reduction," Roper said. "I don't think it H&R Block tax firm, offers abundant evi­ people do indeed know what tax reform dence that there is "widespread misunder­ means-it means that• they pay too i::; the number one thing." Further, it is quite clear, despite Conable's standing of, and lack of information about, much in taxes because millionaires and assertion, that Americans do not equate tax how the tax system works." Taxpayers over­ corporations avoid their fair share. reduction with tax reform. They see tax re­ estimate the percentage of income they As we take up the Revenue Act of form in the same terms that Oarter uses to themselves pay and underestimate the per­ 1978 later in the week, I hope my col­ describe it. centage that high-income people pay; one­ leagues will take into account the mood One question asked in the survey was this: o.uarter of the people think "a tax-d'educ­ "When you hear the words 'tax reform,' which tible contribution costs the giver nothing of the people on this issue, and that we because it can be taken off in income taxes." will remember that the President was of these things does it mean to you?" Six possi:Ole "meanings" were offered as choices: It might not be wise policy to structure a right on this one. making taxes fairer to all, tightening up tax tax program around attitudes that are SURPRISE : PUBLIC BACKS CARTER ON TAXES loopholes, making taxes "fairer to people like formed partly by widespread misconceptions. (By Barry Sussman) you," making tax forms simpler, reducing Nev·ertheless, if public opinion is to be cited What may be the most comprehensive "your personal taxes" and raising "your per­ in the tax d-ebate, it seems only fitting to survey of public attitudes toward taxes ever sonal taxes." point out what the public really does think. conducted shows that Americans are solid­ Seventy-six per cent of those interviewed And if polls that show Carter doing poorly ly behind President Carter on the need for said tax reform meant either making taxes are highly publicized, as they are, those that tax reform and largely behind him on most fairer t o all or tightening up loopholes. Only show him in a favorable light ought to be of the individual tax changes he has sub­ 5 percent said tax reform meant that their publicized as well .• mitted to Congress. taxes would probably go down. The results of the survey, conducted by the Roper organization, were issued July 26, just WIDESPREAD MISCONCEPTIONS as Congress was salvaging the remnants of Overall, the poll shows that, in Roper's DOOLITTLE'S RAIDERS HOLD the Carter tax program. Past administrations word~. "In the view of the American public, REUNION would have made sure such a survey was the major problem with the federal income widely reported, and would have used its tax system in this country is its unfair­ findings to generate public pressure on Con­ ness ... A growing majority sees middle gress on behalf of the president's program. income families as overtaxed, while upper in­ HON. JAMES ABDNOR But the Carter White House apparently has come pe·ople and large businesses are seen as OF SOUTH DAKOTA made no use of the Roper survey, and the undertaxed . . . The public places high IN THE HOUSE OF REPRESENTATIVES media have largely ignored it. A Washington priority on tax reform to make the system Post account of the poll pointed out some of fairer." That could be Jimmy Carter talking. Tuesday, August 8, 1978 the pluses for Carter, but its theme was ex­ What led the Washington Post reporter to e Mr. ABDNOR. Mr. Speaker, the July­ pressed in the opening words: "A new na­ state that the Roper poll was bad news for August issue of Frontiers magazine con­ tionwide tax survey yesterday brought bad the president was a discussion of capital gains news for President Carter." taxes included in the report. As interpreted tains an article concerning the annual Bad news? Not really. On a list of nine by Roper, the public sides more with Con­ reunion of Gen. Jimmy Doolittle's Tokyo broad tax themes or specific proposals, the gress than with the president on capital Raiders. Carter position finds support from the public gains. This year's reunion was held in Rapid on seven. On the eighth, having to do with The findings, however, are not clear-cut. City, S. Dak., with 30 of the 80 original capital gains taxes, the poll shows division. As the law now stands, the capital gains tax crewmen on hand. On the ninth, dealing with a proposed tax works so that people pay taxes on a maxi­ credit for dependents in lieu of a tax exemp­ mum of 49.1 percent of the profit they make It was my privilege to take part in the tion, Carter is a narrow loser. from the sale of stock or property. Carter annual get-together of this valiant group One of the most highly publicized parts proposed originally to make all such profit of Americans whose daring raid over of Carter's original tax proposal, the so-called taxable. The Ways and Means Committee Tokyo and three other Japanese indus- August 8, 1978 EXTENSIONS OF REMARKS 25009 trial cities on April 18, 1942, altered the U.S. task force 600 miles from the Japanese Medal of Honor winner, Joe Foss, Former course of World War II in the Pacific. mainland. The jig was up. The Raiders were governor of South Dakota, Foss was one of forced to depart ahead of schedule. the top World War II aces, credited with The following article was written by At dawn on the morning of April 18, 1942, downing 26 Japanese planes. Another former Mr. Hoadley Dean, who was chairman of the Raiders took off. governor, Stan Hathaway (governor of the Rapid City host committee for the Since the bombers had to fly further than Wyoming from 1966 to 1974) spoke at the 1978 reunion of the Doolittle Raiders: originally planned, extra gasoline was car­ banquet. Hathaway had served on Doolittle's A REUNION OF RAIDERS ried in 10-gallon cans, and the pilots reduced B-17 Flying Fortress in Europe following the It was early 1942, and the Japanese ruled speed to conserve fuel. After the early launch, Tokyo raid. the Pacific. Everywhere, the Allies were reel­ the Hornet and its task force turned and Many termed this year's reunion "the best ing-in the Philippines, in Burma, in China, sped toward safer waters. ever." Next year's is planned for Charleston, in Java. The Americans, stm stunned from Thirteen of the bombers struck at m111tary South Carolina. and industrial sites in the Tokyo-Yokohama But long after the annual reunions are the loss of a major portion of their fleet at only a memory, the daring and boldness of Pearl Harbor, had been pushed back to Aus­ area. The other three hit cities further west-­ tralia. The Japanese armies were invincible; Nagoya and Osaka-Kobe. Bombs from the these 80 men will remain as a shining ex­ first two B-25s struck Tokyo at 12: 15 p.m. ample of American courage and patriotism. the Japanese homeland was an impregnable Our nation has been fortunate that it has fortress ... Or so it seemed. Ninety minutes later the raid ended. Only one bomber failed to drop its ordnance; one always had men like the Doolittle Raiders Then came Doolittle's Raiders-a band of who have risen to the challenge of death 80 airmen. Five were assigned to each of 16 was hit by anti-aircraft fire. All were still flying. when our nation's life has been threatened. B-25 Mitchell bombers-a pilot, co-pilot, May 1t always be so.e navigator, bombardier and engineer-gunner. Thereafter, events turned against the They flew their heavily-loaded twin-engine Raiders. Reflecting the earlier-than-planned bombers off the pitching deck of an aircraft start, the planes were running low on fuel. carrier on a one-way flight of daring. Their Although a strong tailwind pushed most of "impossible" bombing strike at Japan's in­ them across the Chinese coast, thick fog pre­ WASHINGTON POST CAPITULATES dustrial heartland gave the enemy the clear vented any landings. As a result, 11 of the IN FIGHT TO CONTROL NOISY message: There was no place to hide. 16 crt>ws bailed out, most in total darkness. PLANES Doolittle's bold raid over Tokyo and three Four of the crews crash-landed-two on other Japanese industrial cities altered the the coastline, another inland and one ditched course of the war in the Pacific. It set the in the sea just offshore. One plane made it to HON. GLENN M. ANDERSON stage six weeks later for the decisive Battle a safe landing in Russia, where the crew was interned for more than a year. Only two OJ,• CALIFORNIA of Midway which signaled the beginning of IN THE HOUSE OF REPRESENTATIVES the end of Japanese offensive action. crewmen died in the crash landings, and For sheer drama, few World War II ex­ another in bailing out. Tuesday, August 8, 1978 ploits match the Doolittle Raid. For the 80 Eight of Doolittle's Raiders were captured volunteer crewmen, who had spent only a by the Japanese. Three of them were quickly Mr. ANDERSON of California. Mr. month in preparing for the mission, it was executed, and another died later of starva­ Speaker, the Washington Post in an edi­ a test of courage, skill and resourcefulness. tion in prison. The remaining four captives torial today attempts to persuade us that For all there was danger; for many, im­ remained POWs for 40 months until the the noisy airplane problem will go away prisonment; for a few, death. Japanese .surrender. if we but opt for simplistic and unwork­ But after the adventure and the danger Doolittle and the rest of his crews made able solutions. We wish that the world were over, came the memories. And with their way to friendly forces, in western China, helped by Chinese peasants and Amer­ were that uncomplicated. And we almost memories, the pride. Had you been one of wish that we, too, could afford to play the the 80 men of Doolittle's gallant band, it's ican missionaries. One of the missionaries not an experience you'd quickly forget. And was John Birch, for whom the John Birch critic without assuming the hard public they haven't. Each year Doolittle's Raiders Society was later named. responsibility for solving this enormous meet, usually on the anniversary of the April On May 19, 1942, Doolittle was promoted environmental problem of airport and 18th raid, to remember those who are gone. to brigadier general and given the Congres­ aircraft noise. sional Medal of Honor for leading the raid. The Post seems a little fuzzy in some A TOAST IN TRIBUTE He went on to command the 12th, 15th and This year they met in Rapid City, South 8th Army Air Forces during the World War of its facts and assumptions. Dakota, at the end of April. Thirty of the II, retiring as lieutenant general. First, the Airport and Aircraft Noise original Raiders were on hand. But Raider Most of the surviving crewmen went back Reduction Act as proposed is not "solely wives, Raider children, Raider friends, Raider into action, many serving in the China for the purpose of helping an industry widows and at least one Raider secretary­ theater. Twelve more were killed before the comply with Federal law." The current Doolittle's own-brought convention attend­ war ended. noise rules were established administra­ ance to 80. The raiders honored the living ANNUAL TRIBUTE tively without the specific direction of with safety campaign trophies and a scholar­ After the war the Raiders began their an­ the Congress. The Secretary of Trans­ ship, and they honored the dead with a toast nual reunions. from ceremonial goblets. portation can change these administra­ On each of the 80 silver goblets is engraved Earlier Raider gatherings were lighter af­ tive compliance deadlines any time-the a Raider's name. They are kept in a locked fairs-mostly three days of eating and remi­ same way a previous Secretary estab­ case, usually on display in Arnold Hall at the niscing. There was always a press confer­ lished them. They have never been es­ Air Force Academy in Colorado Springs, Colo­ ence and a formal banquet to which the tablished by law. Admittedly we believe rado. Goblets of those who have died are public was invited. Banquet speakers have included Bob Hope, Arthur Godfrey, Joe E. he could do so only at considerable polit­ turned bottom side up. ical risk to the President, but there is This year, the goblets were escorted to the Brown, Robert Cummings, Alex Drier, George reunion by Senior Cadet Leonard Robichaux. Jesse! and Chester Louck of Lum and Ab­ little doubt in the opinion of those who The case he brought also contains a bottle of ner, Congressmen and high-ranking m111tary have studied the situation carefully that brandy. At some future Raiders' convention brass were always invited. the deadlines will be changed if this bill when 78 of the cups are turned upside down: But as the Raiders grew older, their pur­ is not passed. It will be done, among the last two surviving members will open the pose matured. Each year now they give a other reasons, because of the disruption bottle for a final toast. scholarship for a student in aerospace studies that will occur to our air commerce and Twenty seven of the goblets already are and other awards for Air Force safety. The the effect of that on the traveling public. face down, seven for the airmen who died as annual awards-trophies to the Air Force unit with the best traffic safety record and If the Post's premise of the power to the a result of the 1942 raid-a fairly low num­ airlines is even half true, then it is hard ber, considering the risks. the unit with the best ground safety rec­ ord-were established in recognition of the to understand why ·the airlines cannot One of those risks involved what little re­ fact that more Air Force people are killed more easily exert that power to change mained at the time of the U.S. Pacific fight­ in ground accidents than in the air. Since the deadlines than to influence the out­ ing fleet--the 16 ships steaming west across the awards started, Air Force spokesmen come of this bill. Other sectors of the the Pacific to launch the daring attack. The report a 40 percent reduction in ground risk came close to being reality. public such as millions of citizens who fatalities. live near noise-impacted airports includ­ NOW OR NEVER This year's $1,000 aerospace scholarship ing Washington National Airport and Plans called for the task force to move to went to John Mueller of Hot Springs, South within 400 miles of Japan before launching Dakota, a first year electrical engineering whom the Post chooses to ignore may the 16 B-25 bombers off the aircraft carrier student at the South Dakota School of Mines have more at stake. They recently have U.S.S. Hornet. After dropoing their bombs and Technology at Rapid City. been pointing that out to those of us in the airplanes would fly west across the China The four-day reunion itself was covered Congress, if not the Post. If the Post Sea to airfields in friendly Chinese territory. by NBC-TV. Joining Doolittle at the head wishes to capitulate in the fight against But a Japanese fishing boat spotted the banquet table was another Congressional noisy airplanes that is their business but 25010 EXTENSIONS OF REMARKS August 8, 1978 it is our business to meet this public re­ Fourth, it is a glib assumption that creating a federal department of education sponsibility to reduce noise at our Na· only reducing the existing tax will with the potential to transform the way edu­ tion's airports. cation is governed in the United States. achieve the desired result. Reducing the Contrary to widespread belief, the proposed The Public Works and Transportation tax gives the airline two options-reduc­ department is not chiefly an issue of reorga­ Committee also had other purposes in ing fares or retaining the fares and set­ nizing or consolidating federal education mind than helping the industry comply ting the funds aside to buy some of their efforts, of increasing the time or money spent with these administratively established required new equipment. With the dis­ on education, or of deciding which existing deadlines. It felt that the public had a parity which exists between the airlines, agency should or should not be absorbed by right to demand that the airlines meet both as to financial condition and num­ a new department. Establishing a Cabinet­ the deadlines. It wanted to insure a com­ ber of noncomplying planes, the com­ level department is a backdoor way of creat­ ing a national education policy, of breaking mitment by them that they would indeed mittee became convinced that the more with the long tradition of limited federal in­ do so. And it felt that there might be prosperous airlines would reduce fares, volvement in education and of virtually no some public obligation in this case re­ forcing others to do so competitively. federal responsibility for schools and colleges lated to the nature of this industry. Un­ Thus the least prosperous airlines with themselves. like the situation in other industries, the largest fleets of noncomplying air­ As John Ryor, president of the National these environmental requirements were craft would be forced into seeking an ex­ Education Association, which has been the imposed retroactively on equioment that tension of the deadlines or to meeting the driving force behind the de;: artment pro­ already had been certified by the Govern­ most minimum of standards in the least posal, acknowledges, "Creating a department ment as acceptable for ourchase and op­ effective way-retrofitting older air­ of education is, indeed, a profound step in eration for its useful life. Three-fourths which the federal government will be recog­ planes. These are not the environmental nizing, for the first time, that it has a respon­ of the existing fleet was suddenly ren­ objectives which the committee had in dered obsolete by these requirements­ sib111ty for education in and of itself." mind even if satisfactory to the Wash­ Many people apparently are under the mls. almost a public expropriation in effect if ington Post. apprehension that Washington already h!II.J not in fact. Fifth, let it not be understood. Any air­ something that might be called a national Of more importance, the committee line which is far ahead in meeting the "education" policy. The Congress, after all, had a larger public purpose which the compliance deadlines-generally those appropriated nearly $23 billion for this fiscal Post conveniently chooses to ignore. Is with the best profit records-can use year to finance programs linked to education the public good served merely by meeting these funds only to the extent of the at the elementary, secondary and post<>ec­ the minimum requirements established need for noise reduction. Once in com­ ondary levels. But the critical distinction by the noise reduction deadlines? Is there that often gets lost is that these programs pliance, none of the funds collected £erve purposes only indirectly related to edu­ not a public purpose in a system which would be available to them or to any cation. would encourage greater noise reduction other airline. Those funds would con­ The GI Bill, for example, was enacted after and the acquisition of newer technology tinue to go directly into the trust fund­ World War II to ease the transition of mil­ which over the next two decades will a trust fund by the way which at the end lions of servicemen returning to civilian provide greater than minimum noise re­ of 5 years does continue to need those life, to prevent the large-scale unemploy­ lief to those whose lives and livelihoods funds to maintain the safety and relia­ ment that might have occurred if no alter­ are so heavily impacted by intolerable bility of our airport and airways system. native to work had existed-not to aid edu­ levels of noise? Is there no public pur­ cation. The Post-Sputnik programs support­ pose served in helping to encourage our ing science education, teacher preparation and graduate education, enacted in the 1950s technology rather than let that leader­ under the National Defense Education Act, ship slip to other countries? The com­ A DEPARTMENT OF EDUCATION? were created as essential parts of the nation's mittee believes that there is. AN ILL-CONSIDERED IDEA defense effort-not to aid education. Second, can the Post explain which The massive Elementary and Secondary environmental costs relating to other in­ Education Act of 1965, with its emphasis on dustries are not charged back either to HON. JOHN N. ERLENBORN compensatory education for the disadvan· the general public or to the user? Which OF ILLINOIS taged, was basically a civil rights and in· come-redistribution measure, a centerpiectl auto company has not increased its prices IN THE HOUSE OF REPRESENTA.TIVES to the buyer? Which public utility has of the War on Poverty, and certainly not a not passed on the costs with the approval Tuesday, August 8, 1978 measure to aid schools. It was enacted only after a historic constitutional debate re­ of its State/ public utility commission? e Mr. ERLENBORN. Mr. Speaker, soon solved by aiming funds at poor children. Granted there are some problem indus­ the House may be asked to consider leg­ Similarly, federal education programs for the tries-such as steel, where the passing islation to create a Department of Edu­ handicapped, for children with English-lan­ on of the cost may be impossible be­ cation. For this reason, I draw my col­ guage difficulties or for Indian education are cause of foreign competition. Yet, have leagues' attention to a timely article by e'sentially civil rights measures, of a piece there not already been adjustments David w. Breneman and Noel Epstein with school desegregation and the money which have allowed a form of indirect which appeared in the August 6 Wash­ Washington provides to help students over­ relief to steel? Has not the Congress pro­ ington Post. come the educational deprivation that re­ vided special tax treatment for air and Messrs. Breneman and Epstein address sults from segregated schooling. water pollution abatement? Who believes The same holds at the higher education what I regard as the central question level, where student aid programs were that eventually the cost can come from Congress must decide: Who will control created to increase educational opportunity any other source than the purchaser of our education system? That question, for low-income students and not to provide the product? And which other industry like the article, raises others: "How general support for colleges and universities. is willing to. step forward and accept the much Federal influence there should be Just as Congress has rejected the idea that it greater degree of governmental oversight over education, how much in education is responsible for the financial well-being of and control involved? priorities, in standards and in other edu­ elementary and secondary schools or for gen­ ·Third, the Post seems to think that eral student achievement, so it has refused cation decisions." to provide direct institutional aid to col­ the incentive funds which come from an I hope my colleagues will decide that leges and universities, except in the limited existing user tax for a temporary period Federal tentacles have reached far case of helping mainly minority campuses are somehow tax exempt. At the urg­ enough. We should not create another under a "developing institutions" program. ing of the Treasury Department and the DOE. It is time to help Mr. Carter keep In these and other instances-in Washing­ insistence of the Ways and Means Com­ his campaign promise to reduce the size ton's role, for another major example, in mittee the proposal now makes these of Government. supporting the nation's research efforts, funds taxable by the Internal Revenue UNCLE SAM'S GROWING CLOUT IN THE whether for military, health or other ends­ Service. So, in effect, whatever the cost education is an instrument used to achieve CLASSROOM a more fundamental federal purpose, and to the airline user for this temporary CREATING A NEW DEPARTMNT IS A BACKDOOR WAY con!:!equently there has never been a need period, a substantial portion is trans­ TO ESTABLISH A U.S. RESPONSIBILITY FOR for an education policy. Instead, there have ferred from the aviation trust fund to EDUCATION ITSELF been national security policies, antipoverty the general funds of the U.S. Govern­ (By David W. Breneman and Noel Epstein) policies, civil rights policies, labor policies, ment for the benefit of the general pub­ With virtually no public debate over the child welfare policies, veterans' benefit and lic-another plus for the nonairline us­ central issue at stake, the Carter administra­ · other policies, all drawing when necessary on ing taxpayer. tion and the Congress are moving toward educational institutions. August 8, 1978 EXTENSIONS OF REMARKS 25011

"A FUNDAMENTALLY POLITICAL ACT" ment that the federal government takes. Only velopment. The foundation now places less emphasis on getting specific courses into the It is thoroughly understandable, then, why an increased federal priority to education these "education" programs are scattered can increase the American people's confidence schools. in our educational system." It is not heavy-handed power-seeking by across numerous federal agencies. They are bureaucrats that leads to increased federal scattered because they are, first and fore­ What can Ribicoff, himself a former sec­ retary of health, education and welfare, mean involvement in education, but these kinds most, serving other established federal aims. of political pressures. The pressures have A reshuffling that attempts to draw some in suggesting such a dramatic departure of these programs together under the orga­ from existing federal policy? How does he stemmed from public perceptions that there nizing principle of education is a profound propose that the federal government might was yet another cri3is in the schools and that restatement of federal purposes and priori­ make the "whole system of education" sud­ Washington, which is not responsible ror ties and cannot be regarded merely as a move denly dependent on Washington's "leadership most of what happens .in the classroom, and commitment"? should nonetheless do something about it. to correct organizational mistakes of the They have resulted from a desire to justify past. The Senate bill hints at some potential Speaking last year at a conference on gov­ ways. It states, for example, that one pur­ federal education spending. ernment reorganization, Rep. John Brademas pose is "to promote the quality and relevance The pressures also have come from groups (D.-Ind.) made this point forcefully: " ... too of education to individual needs, including that want their views or goals pressed in the often reorganizers omit-some of them per­ the assurance of an adequate skill level ..." schools. Many of the most intense education haps deliberately-an explicit recognition That could justify any manner of federal ac­ controversies have centered on civil rights that reorganization of the executive branch tion. Who decides what is an "an adequate issues such as affirmative action for faculty ... is not simply an exercise in improving the skill level"? Is Washington to establish min­ members at colleges and universities, battles efficiency of government.... imum skill requirements? Are we talking against sex discrimination in classrooms, de­ "Reorganization is a fundamentally politi­ about paving the way for a national test, a segregation and bilingual education. cal act, not political in the partisan sense move proposed by Adm. Hyman Rickover but Indeed, fearing that the civil rights-labor (although it may be) but political in that successfuly thwarted thus far? coalition behind these and related drives every organization-and every reorganiza­ Those who set test questions, of course, in might be fragmented if an education depart­ tion-means a distribution-or redistribu­ effect decide what is taught in the schools, or ment is created, Rep. Shirley Chisholm (D­ tion-of power and infiuence over the sub- at least what a school's priorities should be. N.Y.) criticized the department plan be!ore stance of policy ... " · Parents, teachers, pr:ncipals, school boards a House subcommittee last week. "Now, to "Organization is not just management. It and the states may not agree with each other thoughtlessly destroy these coalitions ... in • is policy, and in the· American democratic very often on these questions, but they pre­ order to achieve the dubious goal of forma­ system, policy is politics." sumably still think that they are their deci- tion of a separate department of education To create a department of education is, at sions to make, not Washington's. . appears foolhardy," she said. heart, an exercise in policymaking, not in ef­ Or consider another of the Senate bill's Any broadening of the government's in­ ficiency. Making education the defining ele­ purposes. Washington is "to provide leader­ volvement in education, of course, potentially ment of a Cabinet-level department is essen­ ship in the support of research relating to dilutes its concentration on poverty and tially to authorize the creation of a federal human development and learning systems minority concerns. The issue has been at the policy for education itself. that complement education, with a greater heart of past attempts to aim the major This, it must be emphasized, does not mean emphasis on the practical application of such elementary and secondary aid program at that a Cabinet-level department would be research," and to work with numerous others students in general who are doing badly in designed to lead to federal "control" of edu­ to "implement the findings of such research school rather than just at children of cation, as the NEA's Ryor and many others at the local level." poverty who need help, as at present, just as stress. "Control" is not, and never has been, Getting federally sponsored research or it is central to the fight over substituting the question, and it is of scarcely any value curricula into the schools has long been wider college tuition-tax credits for student to add language to a department bill to pre­ among the more sensitive issues for Wash­ aid currently determined by economic need. vent federal control. Indeed. it is redundant; ington. Agencies already sponsor curricula in It is difficult to imagine how creation of a existing law bars federal officials from exer­ areas ranging from ethnicity to energy, voca­ department, and the extravagant rhetoric of cising "any direction, supervision, or control tional instruction to consumer education, some department proponents, can fail to over the curriculum, program of instruction, bilingual studies t:> consumer education. generate additional pressures for Washing­ administration, or personnel of any educa­ While they cannot press the products on ton involvement. If there is to be no in­ tional institution, school or school sys­ schools because of restraints on federal influ­ creased federal role, what can be meant by tem ..." ence, if few of the materials are used the an "increased federal priority to education" The question is how much federal infiu­ Congress or the Office of Management and which alone can "increase Americans' con­ ence there should be over education, how Budget tend to question the sense of the ac­ fidence in our educational system"? much say in education priorities, in stand­ tivity. Some may suspect that higher "priority" ards and in other education decisions. This This is one frustration, for example, of the really means higher budgets. The NEA, whose can be determined in many ways-where Health, Education and Welfare Department's 1.8 million members make it the nation's Washington puts its money and where it National Institute of Education, which spon­ second largest union, has long sought to ex­ withholds funds, what requirements come sors research in a number of areas, includ­ pand the federal share of education outlays with the money, what approaches to teach­ ing basic skills. Once the results are dissemi­ from the current 8 percent to 33 percent. ing it would like to see schools adopt for dif­ nated schools are free to ignore them, which But there is little reason to believe that ferent students, to name some. Washington is not infrequently the case. That has not creating a Cabinet-level department would already exercises a large influence over the helped NIE get funding from Congress. unleash more federal funds. policies, conduct and organization of ele­ Similarly, the National Science Founda­ As Pat Gwaltney, the OMB official most mentary, secondary and higher education tion, which sponsors not only science and immediately in charge of the education de­ without having federal officials burst into math but politically sensitive social science partment proposal, remarks, "We looked at classrooms to impose a prescribed curricu­ curricula, has become embroiled in contro­ the departments of Housing and Urban lum on unwitting students and teachers. versies stemming from the same dilemma. Development and Transportation and found that their budget increases did not exceed Indeed, that influence has burgeoned in "In the early 1970s," writes the University the past decade as Washington has used the of Maryland's Marjorie Gardner, "it became those of other domestic programs, that crea­ schools to achieve additional federal pur­ evident that the diffusion of the new curri­ tion of a new department per se does not poses. Whether this is viewed as good or bad cula was not occurring spontaneously, that, appear to result in increased federal spend­ obviously depends on one's view of each of in fact, the new programs were not being ing." the government's underlying political, social, adopted by enough schools to satisfy the Others may think that a separate educa­ economic or other aims. But the overall effect original goals . . ." Under pressure from tion department would result in greater has been troubling some educators. Joseph both OMB and the White House, the foun­ federal coordination. The reality, however, Cronin, Illinois' superintendent of education, dation decided to pay for implementation is that if programs now lodged for good for example, has remarked that "slowly, in­ only of courses it had sponsored. Following reason in Defense, Agriculture, Interior and exorably and incrementally, the federal gov­ protests from several universities seeking the NSF are brought together, as now pro­ ernment is taking over education. Especially money for non-NSF projects, the agency posed, it would only create the reverse since 1965, the country has moved-almost backed down. problem of coordinating with the original every year-toward a national system of agencies. education." Two years ago the foundation got into a much-publicized controversy over an ele­ AN INVISIBLE ISSUE EXCESSIVE EXPECTATIONS mentary school social science curriculum it Nobody questions the need to improve It is this trend which a department of edu­ had promoted called "Man: A Course or administration of existing programs involv­ cation is likely to accelerate. To understand Study." The course included material about ing education, but it is not evident why a this one need only listen to the sweeping re­ one Arctic Eskimo culture's belief that, tor new Cabinet-level department is required to marks of Sen. Abraham Ribicoff (D-Conn.), others to survive, families sometimes must do this. Virtually anything that might be chief sponsor of the Senate bill to create the choose to let old people or female infants die. done to advance Washington's highest­ department, in a recent interview with the That disturbed some parents and conserva­ priority aim of assuring equal opportunity NEA: "The whole system of education is tive members of Congress and led to tempo­ for the disadvantaged probably could be dependent upon the leadership and commit- rary suspension of all NSF curriculum de- achieved with the existing HEW structure. 25012 EXTENSIONS OF REMARKS August 8, 1978 In higher education, two of the largest (29) Amendment to public works bill to 1978 and by another 2 cents in 1979. No. programs providing student aid-education reduce funds for Ohio. No. Passed, 229-158. Failed, 52-370. benefits for veterans and for dependents of ( 39) Adoption of tougher code of ethics (512) Eliminate the crude oil equaliza­ social security recipients-are not included for congressmen. Yes. Passed, 402-22. tion tax. No. Failed, 203-219. in the proposed department, so there would (55) Tax credit for businesses hiring new (513) National Energy Act imposing a tax be no change. Similarly, Washington's second employees. Yes. Passed, 341-74. on gas-guzzling cars, a tax to raise the price broadest goal of supporting the nation's re­ (57) Reduce taxes by $43.1 billion over of crude oil, a tax to discourage use of oil search effort, achieved through a multitude FY 77, 78 and 79. Yes. Passed 232-131. and gas for boiler fuel, tax credits for con­ of grants and contracts to universities and (107) Executive Reorganization Act. Yes. verting boilers to coal and for weatherizing research institutions, would not be affected Passed, 395-22. homes, increasing natural gas prices, setting at all. (124) Federal regulation of debt collectors' a national policy for regulating electric Others believe what's needed is a Cabinet activities. No. Passed, 199-198. utilities, requiring efficiency labeling of ap­ secretary who can devote more time to pro­ (154) Cut budget outlays by $7 million for pliances and cars, establishing program to grams aimed at education. But it is hard to congressional pay raise. No. Passed, 236-179. help homeowners install weatherization understand what this would accomplish if a (157) Increase defense budget outlays in equipment, and setting a program for fuel secretary had little prospect of getting more FY 78 by $2.3 billion above $9.5 billion in­ conservation in federal facllities. Yes. Passed, money or significantly improving coordina­ crease already provided. No. Passed, 225-184. 244-177. tion and administration of existing programs (162) Cut FY 78 budget authority and out­ (516) Conference Report on FY 78 Defense with their built-in limitations. lays by $100 million to strike funding for un­ Appropriations providing $109.8 b1llion for So much attention has been given to these necessary water projects. Yes. Failed, 143- national defense. Yes. Passed, 361-36. areas where so little seems likely to be ac­ 252. ( 522) Cut revenue by $175 million in Sec­ complished, in fact, that there has been little (165) First FY 78 Budget Resolution which ond FY 78 Budget Resolution provide tuition recognition and hardly any public debate on set budget authority at $505.7 billion, out­ tax credits up to $250. Yes. Passed, 311-76. the central issue of creating, for the first lays at $466.7 billion, revenues at $398.1 bil­ ( 545) Conference Report on Second FY time, a national responsibility for education lion, and the deficit at $68.6 billion. No. 78 Budget Resolution providing for budget and putting in motion increased forces and Failed, 84-320. expectations for central influence. outlays of $458.3 billion and deficit of $61.3 (184) Conference report on Public Works b1llion. Yes. Passed, 215-187. It is conceivable that specific and blunt Employment Act providing $6 billion !or lo­ • language might be added to the department (546) Eliminate provision indexing mini­ bills stating that their intent is not to alter cal public works project. Yes. Passed, 33-77. mum wage to the average production work­ the limited federal role in any way, but it ia (190) Conference report on FY 77 Eco­ er's wage. No. Passed, 223-193. nomic Stimulus Appropriations providing (549) Retain 50 percent tip credit. Yes. doubtful that would curb the pressures f increased federal influence that are bound to $20.1 billion for local public works, public Passed, 264-161. accompany a cabinet department. service jobs, youth training, revenue shar­ (551) Establish youth subminimum allow­ It is easy to understand the Carter admin­ ing, countercyclical aid, emergency drought ing employers to pay 85 percent of the mini­ istration's desire for a legislative victory, and assistance. Yes. Passed 326-87. mum wage to youths under age 19 for the the education department looks like an easy (204) First FY 78 Budget Resolution which first 6 months. Yes. Failed, 210-211. one. But that political need does not justify set outlays at $464.5 billion with a deficit of ( 555) Increase the minimum wage to $2.65 e.n action that may be seen later as a serious $66.4 billion. Yes. Passed, 213-179. in 1978, $2.85 in 1979, and $3.05 in 1980. Yes. mistake, launching the country in another (221) Require 25 percent of Urban Devel­ Passed, 309-96. unintended direction. A department is either opment Action Grant funds go to communi­ (569) Cut funding for Clinch River Breed­ a prescription for increased central influence ties under 50,000 population. Yes. Passed, er Reactor from $150 million to $17 million over education or for excessive expectations 279- 129. to close out project. No. Failed, 162-246. that will only lead to more, not less, frus­ (240) Youth Employment and Innovative (570) Cut funding for Clinch River Breed­ tration.e Demonstration Projects Act providing for er Reactor from $150 m1llion to $75 million Young Adult Conservation Corps. Yes. and delay project for a year. Yes. Failed, 129- Passed, 334-61. 277. VOTING RECORD (252) Conference Report on First FY 78 (582) Raise mandatory retirement age for Budget Resolution providing $461 billion in private workers to 70. Yes. Passed 359-4. outlays and a deficit of $65 billion. Yes. (609) Authorizing $2.67 b1llion for ERDA's HON. DONALD J. PEASE Passed, 221-177. national security nuclear energy programs OF OHIO (271) Increase veterans' disability com­ including funds for the neutron bomb. No. IN THE HOUSE OF REPRESENTATIVES pensation rates by 6 percent. Yes. Passed, Pa.ssed, 330-78. 393-0. (628) Guarantee employers same access to Tuesday, August 8, 1978 (290) Postpone tougher auto emission employees in union halls that union employ­ • Mr. PEASE. Mr. Speaker, it seems that standards until 1980. Yes. Passed, 255-139. ees have to employees on company grounds. the average citizen has no reasonable (291) Clean Air Act Amendments. Yes. Yes. Passed, 408-8. Passed, 326-49. (631) Comp.rise extending time limits for way to check the voting record of his or (338) Cut funding for 16 water projects representational elections from 15 to 25 days her representative. Lacking the resource in the FY 78 Public Works Appropriations. when majority of employees petition and material, the time, and the expertise Yes. Failed, 194-218. from 45 to 50 days when 30 percent to 50 needed to wade through the CoNGRES­ (388) Deny cost-of-living increase to mem­ percent of employees petition. Yes. Passed. SIONAL RECORD or other publications, citi­ bers of Congress. Yes. Passed, 397-20. 418-0. zens are left pretty much at loose ends. (389) Cut FY 78 Defense Appropriation by (633) Compromise granting Labor Secre­ $1.5 billion for five B-1 bombers. Yes. Failed, tary discretion to waive or reduce debarment. For this reason, I have compiled the fol­ Yes. Passed, 394-8. lowing list of my votes on key issues dur­ 178-243. (401) Allow military retirees to receive ( 639) Labor Law Reform Act. Yes. Passed, ing the 95th Congress. My constituents both a military pension and a salary for a 257-163. have a right to know how I have voted federal job. No. Passed, 219-174. (649) Prohibit consumer class action suits and I want to accommodate them. (402) Defense FY 78 Appropriation pro­ pursuant to FTC regulations. No. Passed, My key votes are tabulated in such a viding $110.6 billion for national defense. 281-125. way that each issue is described in lan­ Yes. Passed, 333-54. (651) Federal Trade Commission Amend­ (407) Provide 7 percent increase for vet­ ments. Yes. Passed, 279- 131. guage which can be easily understood. (659) Prohibit implementations of sac­ Each item in the list begins with the roll­ erans' and survivors' pensions. Yes. Passed, charin ban for 18 months. Yes. Passed, call number of the vote, followed by a 403-0. 375-23. description of the question on which the ( 416) Establish Consumer Cooperative ( 671) Cargo Preference Act. No. Failed, vote was taken. This is followed by my Bank. Yes. Passed, 199-198. 165-257. (473) Eliminate purchasing requirement (693) Supplemental Appropriations for FY own vote on the issue, either "Yes", "No", for food stamps and tightened eligibility or "DNV" the right think we have given the Bank enough visi­ (257) To regulate lobbying and related ac­ kind of support. bility and independence to insulate it some­ tivities. Yes. Passed, 259-140. One of the major attributes of solar energy what. The Bank Board, for instance, would ic that it can be used directly by the home­ consist of 7 members, 4 of which would come (278) To increase the budget authority by from the private sector and all of whom $1 billion and increase by $844 million out­ owner and can helo m3.ke him almost energy self-sufficient. But- this same asset also pre­ would be appointed directly by the President. lays for new entitlement authority for vet­ Also, even before the program went into erans programs. Yes. Passed, 362-33. sents us a unique problem in trying to gain its widespread acceptance and use. That is, effect, HUD would have to detail for Con­ (280) To provide a reduction of $255 mil­ the homeowner himself must be able to bear gress exactly how the Bank would be set lion in budget authority and outlays for fis­ the burden in many cases, of a sizeable up and how the program would be run­ cal year 1979, thereby accommodating a re­ front-end investment. The cost of solar sys­ thus, providing additional congressional re­ duction in pay raise increases for federal tems can range from 800 dollars to 15 thou­ view. workers from 6 o/o to 5.5%. Yes. Failed, 172- 210. sand dollars. Even if we had a tax credit In the original bill, the Solar Bank would on the books, the homeowner would still have had the power to make direct loans. or (340) To designate certain lands in Alaska have to hurdle the burden of the initial cost course, this would have involved an exten­ as units of the National Park, National Wild­ in order to take advantage of it. And it is sive bureaucracy. In the amended version, life Refuge, Wild and Scenic Rivers and Na­ still extremely difficult to obtain financing the private lender would initiate and service tional Wilderness Preservation System. Yes. through private lending institutions, even all loans and bear much of the risk. The Passed, 277-31. for the most creditworthy borrowers. Studies Solar Bank simply would compensate the (393) To make private, non-profit elemen­ conducted by a number of groups, including lender for the difference between the sub­ tary and secondary school tultion expenses the Office of Technology AssesEmen t and the sidized interest rate and the market rate. eligible for a federal income tax credit. Yes. Joint Economic Committee, have verified this Since the lender would be compensated in a Passed, 209-194. dilemma. lump sum payment, the Solar Bank woulAsia when conflicts on Ways and Means. Undoubtedly their ob­ to the point where it benefits all energy con­ arose in those areas. jections are well-intentioned, and often po­ sumers and not just the wealthy or adven­ As we mourn, we must keep in sight his litically appealing. Nevertheless, we are con­ turous. But our immediate goal is to produce outstanding contributions to the church vinced that the significant public benefits a bill that will work, and work efficiently. and to humanity and pray that we shall which H.R. 8729 will provide, clearly out­ Both HUD and the Library of Congress have carry forward with the inspiration which weigh the objections which have been raised. state..! that public access to solar loans is a he gave.• Accordingly, Mr. Chairman, ALPA com­ key ingredient to the success of any solar loan mends you for your diligence and hard work program. What better way is there to reach in developing this important legislation, and most people than through the private lender? we will continue to make every effort to as­ Banks and S&Ls re·ach into virtually every AIRLINE PILOTS ASSOCIATION'S sist you in accomplishing its pa.sSage before community in the country. And this kind of 30,000 MEMBERS SAY H.R. 8729 Congress adjourns. limited government involvement should REPRESENTS BEST APPROACH TO Sincerely, make for a program in which both the pri­ AIRCRAFT NOISE ABATEMENT AND J. J. O'DoNNELL, vate lender and the consumer would want TO MAINTAINING U.S. LEADER­ Prestdent.e to participate. It's also true that if the pri­ SHIP IN COMMERCIAL AEROSPACE vate lender stands to make a profit, he's nat­ INDUSTRY, AS WELL AS BEST OP­ urally going to work hard to make the pro­ gram a success. It should also be kept in PORTUNITY IN LONG STRUGGLE ERA RATIFICATION: THE CASE mind that he will be assuming most of the TO SOLVE AIRPORT NOISE PROB­ AGAINST RESCISSIONS risk in case of a default. LEM In any event, I am firmly convinced that solar can and should be an important source HON. ROBERT F. DRINAN of energy for this country in the near future. HON. GLENN M. AN-DERSON OF MASSACHUSETTS OF CALIFORNIA In fact, it just mirzht be the deciding factor IN THE HOUSE OF REPRESENTATIVES in whether we will ever experience the cata­ IN THE HOUSE OF REPRESENTATIVES Tuesday, August 8, 1978 strophic energy crunch that many speak of. Tuesday, August 8, 1978 But we can't just sit back and expect a solar • Mr. DRINAN. Mr. Speaker as a mem­ industry to magically appear. If we do, it e Mr. ANDERSON of California. Mr. ber of the Judiciary Subcommittee on won't be there when we most need it. So we Speaker, the Airline Pilots Association Civil and Constitutional Rights, I have must give it the same degree of support that under the leadership of their very active has been given to the industries associated had the privilege, during the past 10 with nuclear, on, natural gas, hydropower and able president, Mr. J . J. O'Donnell, months, of hearing many eminent con­ and even coal. has expressed to me again the continued stitutional law experts' views on House Almost equally important-and what is at steadfast support of the Airport and Air­ Joint Resolution 638, the proposed ex­ the heart of my proposal-is the form that craft Noise Reduction Act, H.R. 8729, by tension of time available for ratification support will take. There is clear evidence their 30,000 members. o.: the equal rights amendment. One of that one of the most effective ways to stimu­ Mr. O'Donnell is right, of course, in the issues arising out of this legislation late the widespread use of solar energy is by indicating that it is the public which will has been whether attempted rescissions helping the energy consumer overcome the benefit or lose depending on what we do by States which had previously ratified Impractical front-end cost of solar equip­ with this carefully structured bill. By ment. I believe the Solar Energy Development the amendment should be recognized. Bank would provide this service in a fair, acting now, eventually we will save the I would like to share with my col­ efficient and timely manner and I would urge general public billions, and do so without leagues the reasons why I believe that my colleagues to support it.e 1 cent of extra tax on the user. The these rescissions should not be recog­ general public will not be taxed at all nized and why the subcommittee, by a nnder this proposal. vote of 21 to 13, defeated an amendment Am LINE Pn.oTs AssociATION, to House Joint Resolution 638 which POPE PAUL VI Washington., D.C., August 7, 1978. would have required the recognition of Hon. GLENN M. ANDERSON, these rescissions. Chairman, Subcommittee on Aviation, Com­ mittee on Public Works and Transporta­ Department of Justice attorneys, in a HON. CLEMENT J. ZABLOCKI tion, U.S. House of Representatives, brief submitted to the subcommittee, OF WISCONSIN Washington, D.C. went back to the intent of the Framers DEAR MR. CHAIRMAN: In numerous occa­ of the Constitution and found that both IN THE HOUSE OF REPRESENTATIVES sions in the past, I have expressed the strong Hamilton and Madison opposed rescis­ Monday, August 7,1978 support of the Air Line Pilots Association for sions. When the State of New York was enactment of H.R. 8729, the "Airport and considering ratifying the Constitution on e Mr. ZABLOCKI. Mr. Speaker, the out­ Aircraft Noise Reduction Act." We have con­ pouring of grief around the world over sistently argued that this legislation repre­ the condition that certain amendments the death of Pope Paul VI is a just tribute sents the best approach to achieve meaning­ be adopted, Madison wrote in a letter to to the greatness of his leadership. History ful aircraft noise abatement, and to main­ Hamilton: books of the future will show even more tain U.S. leadership in the commercial aero­ The Constitution requires an adoption in space industry which is so critical to our bal­ toto and for ever. clearly his high stature in an era of tur­ ance of payments and the employment of bulence within the church and the tem­ American workers. I want to express again to Although that letter was hastily writ­ poral world. you, as the principal author and proponent ten, there can be little doubt, judging History placed on Pope Paul the role ot this bill, that our association, and the from the clear and emphatic tone of his of putting into effect many of the more than 30,000 commercial airline pilots statements, that Madison meant what he changes within the church set in motion whom we represent, remain steadfast in our said. Also, since the question had come by Pope John XXIII, reforms which were position that H.R . 8729 should be enacted up earlier, with respect to an attempted necessary and yet at the same time met during this Congress. conditional ratification by Virginia, we In recent weeks, however, I have become know that his opinion was not hastily with significant opposition. Pope Paul increasingly distressed and frustrated over kept the integrity of the church as a the difficulties which have impeded the formulated. whole, avoiding a disastrous split, and progress of your bill. I am deeply concerned, Our legislative and judicial history guided it to further ways in which it as I'm sure you are, that if Congress tails to with respect to rescissions has been con­ could serve mankind. pass H.R. 8729 this year, we will have lost sistent with Madison's view. August 8, 1978 EXTENSIONS OF REMARKS 25015 In the 1939 decision Coleman against by Congress in deciding the issue of re­ As Harvard Law graduates Brenda and Miller, the Supreme Court cited the prec­ scissions is largely a judicial one. since it Marc Feigen Fasteau have put it so well edent of the 14th amendment's ratifica­ involved interpreting the Constitution. in an article for the new Harvard Wom­ tion. In that instance, Congress recog­ Thus, it is appropriate for Congress to en's Law Journal: nized ratifications of the amendment by respect precedent just as the judiciary Even if the notion of neutrality between States which had attempted to rescind does. proponents a.nd opponents of proposed their ratification. The Court also noted a Prof. Herbert Wechsler of Columbia amendments were appropriate, it is clearly similar action with regard to the 15th University Law School has written: inappropriate to consider only questions of amendment. The Court concluded: I believe that history has bound us to the the finality of ratification and rejection while proposition that a. state legislative ratifica­ ignoring the other features of the amend­ Thus the political departments of the Gov­ ment process. Rigorous application of the ernment dealt with the effect both of the tion of a. proposed amendment cannot be ef­ previous rejection a.nd of attempted with­ fectively rescinded, whatever change of sen­ "fairness" criteria. woud require the absurd: drawal and determined that both were in­ timent ma.y have occurred. This, to be sure, that the procedural hurdles to amending a.nd is a question that the Coleman decision not amending the Constitution be equally effectual in the presence of a.n actual ratifi­ balanced. cation. also remits to the Congress, for determina­ tion. I cannot believe, however, that Con­ And the Court recognized that it is gress could responsibly repudiate the tradi­ I therefore urge my colleagues to sup­ these "political departments," and not tion of a. century upon this point. jeopardiz­ port House Joint Resolution 638 with­ the courts, which should make this deter­ ing as it would the ratification of the Four­ out an amendment recognizing rescis­ mination: teenth and Fifteenth Amendments. sions of States which had previously rati­ fied the ERA.e We think that in accordance with this his­ There is another reason why we should torical precedent the question of the efficacy adhere to Congress determinations of of ratifications by state legislatures, 1n the the past. Certainty in our ratification light of previous rejection or attempted withdrawal, should be regarded a.s a. political process is vital if the procedure is to be INCOME TAX CREDIT ON SOCIAL question pertaining to the political depart­ orderly and equitable. SECURITY TAX ments, with the ultimate authority in Con- · If a State knows its ratification is un­ gress in the exercise of its control over the conditonal and irrevocable, there results promulgation of the adoption o.f the amend­ a clarity and definiteness. Otherwise, the HON. RICHARD A. GEPHARDT ment. chaotic situation could result where a OF MISSOURI This "political question doctrine" is state would turn around its position on IN THE HOUSE OF REPRESENTATIVES alive and well today; the Supreme Court . an amendment with each new legislative Tuesday, August 8, 1978 would still find that Congress has the session. e Mr. GEPHARDT. Mr. Speaker, I hope sole authority to determine the validity I repeatedly hear the argument that it the Rules Committee will make in order of attempted rescissions. In the 1962 case is "not fair" to treat States' rejections of in the consideration of H.R. 13511 my Baker against Carr, the Supreme Court a proposed amendment as reversible amendment which offers an income tax cited Coleman twice as an example of an while treating ratifications as irrever­ credit to both employers and employees issue which was "committed to congres­ sible. equal to 5 percent of their socia! security sional resolution and involved criteria of In their wisdom the framers of our payroll tax. The credit would be available decision that necessarily escaped the Constitution set up in article V many and payable to any person or entity pay­ judicial grasp." obstacles to be overcome before an ing the payroll tax regardless of their in­ Thus, the validity of rescissions is to amendment becomes a part of that come tax liability. If this amendment is be decided by Congress-at the time the document. The proposed amendment enacted the business expense deduction 38th State ratifies the amendment. What must be passed by both houses of Con­ now available to employers for payment will Congress decide at that time? I hope gress by a supermajority vote of two­ of social security taxes would be appro­ it will look to the past as well as the thirds. It must then be ratified by three­ priately reduced so employer,s would not future. fourths of the States' legislatures or con­ enjoy both a full deduction plus a 5- In the past Congress has consistently ventions. It has been pointed out that percent credit for payment of payroll treated a ratification of a constitutional in the legislature system, since the pro­ taxes. The credit would only be available amendment as final and a vote of rejec­ posed amendment is considered first at to employees and employers who pay so­ tion as having no effect. This has been the committee level in most States, 140 cial security taxes. The credit would be true not ~:mly regarding the 14th and 15th out of 193 decisional units must approve reflected in employee's paychecks begin­ amendments, but also with respect to the proposed amendment. Thus the ning in January, 1979 as it would be cal­ various legislative attempts which have cards are stacked· against the ratifica­ culated in payroll withholding tables. been made to recognize States' at­ tion of an amendment. Further, the Therefore, as 1979 payroll tax increases tempted rescissions. Between 1967 and amendment may be challenged in the called for by the 1977 social security leg­ 1973, Senator Ervin introduced four un­ courts if it is felt that the ratification islation come into effect this new credit successful bills which would have vali­ was not within some reasonable time would ameliorate the effect of such tax dated rescissions, and in 1921 and 1924 after the proposal. increases. The net effect of my amend­ the Wadsworth-Garrett amendment Since the proponents and opponents ment on taxpayers of different income which would have permitted States tore­ of a proposed amendment are not on groups can be clearly seen in the follow­ verse both prior ratifications and prior equal footing anywhere along the ing table which shows the net change in rejections, was proposed in vain. process, it does not make sense to demand 1979 taxes under the various income tax Why should Congress position in the that they be treated equally with respect reduction proposals that will be voted on past affect us? The function performed to the rescission issue. on the floor on Thursday: NET CHANGE IN 1979 TAXES (INCOME AND SOCIAL SECURITY TAXES COMBINED) FOR A FAMILY OF 4 UNDER COMPETING PROPOSALS

Wage and salary income $5,000 $10, 000 $15,000 $20,000 $25, 000 $30,000 $40,000 $50,000 $100,000

Ullman-Jones (Committee bill). $16.3.. __------+14 -34 -35 +115 +207 +135 -47 -215 -485 -118 -286 -556 Gephardt plus Ullma~-~ones1 $21.9 ... ______------1 -65 -81 +53 +137 +65 Corman- F1sher (Adm1mstrat1on), $8.1. ______+14 -232 -187 +33 +131 +16 -215 -261 -261 Kemp-Roth (Republican), $31.7 ___ _------______+14 -48 -131 -3 +71 -45 -340 -661 -2461 Gephardt plus Corman- Fisher (DSG backed), $23.9 ..•• -1 -263 -233 -29 +61 -55 -286 -332 -332

Note : All data except Kemp-Roth figures provided by Treasury Department of Tax Analysis. Kemp-Roth figures computed by DSG using data pro~ i ded by Joint Comll)ittee on Taxation. Revenue impact : The dollar figure below each proposal represents the revenue impact in billions. Kemp-Roth is the only proposal which exceeds the Congressional Budget Resolution.

This table clearly shows that even th~ their 1977 net tax liability. However it is billion on a calendar year basis, which most generous inwme tax reduction pro­ also clear that my amendment does les­ would result in a total tax package cost of $21.9 billion if you assume Ullman­ posal coupled with my sen the tax increases caused by the 1977 Jones prevails of $23 .9 if you assume that amendment does not result in a net tax social security amendments. Corman-Fisher prevails. My amendment reduction for all income groups over The cost of my amendment is $5.6 would expire in 2 years. 25016 EXTENSIONS OF REMARKS August 8, 1978 I submit that my amendment clearly of a repressive Hanoi regime forcing "re­ held, and free those detained because of po­ helps us achieve the kind of tax relief education" upon the Vietnamese people. litical beliefs. It also called for "recognition of the right to open and free communica­ we need to give beginning in 1979. I do There is occurring a severe limitation of tion." 2 not believe it makes the tax reduction too human rights: of communication, of To be sure, not all members of the anti­ large. Most economists agree that a tax opinion, of religion and property, among war movement share these views. Some, led reduction of between $20 and $25 billion others. "Reeducation" translates easily by Corliss Lamont took an advertisement in makes sound economic sense. Federal that most repulsive of communism's the New York Times downplaying the se­ Re3erve Chairman William Miller has tendencies. Mr. Olsen's article details verity of the repressive measures and plead­ as rigid, oppressive government control, ing necessity.a And other Westerners sympa­ called for reduction in the tax package thetic to the Hanoi regime have spoken in but he also has urged a reduction in the rarely publicized Indochinese situa­ enthusiastic tones of the practices of the social security taxes. If we add my tion: new government. Midge Meinertz of Church amendment to either income tax cut pro­ REPRESSION IN VIETNAM World Service, for example, has stated that posal we can :fight inflation without Since the Communist takeover of Indo­ Vietnam is now a "free and independent so­ exceeding a reasonable revenue loss. china in 1975, Vietnam has attracted rela­ ciety" which shows respect for "individual As Prof. Robert Eisner, professor of eco­ tively little notice in the American media. human dignity."~ A few Americans given Recently, however, several new developments touro of "re-education" camps and "New nomics at Northwestern University re­ have once more focused attention on that Economic Zones," such as Carol Bragg of the cently stated: troubled nation: the growing friction be­ American Friends Service Committee, have Ideally, taxes should be cut in those tween the Hanoi regime and its Chinese and concluded that Vietnam's rulers are going to areas where they directly affect costs. Low­ Cambodian neighbors; the unmasking of a "build a new society based on justice and er costs would mean lower prices. Thus peo­ Vietnamese spy operation in Washington; equality." 5 ple would l e able to buy more in real terms, and the ongoing campaign for "normaliza­ A markedly different picture emerges from increasinl! output and employment while tion" of U.S.-Vietnamese relations and Amer­ the reports of refugees who have managed to prices ar ~ lower than they would otherwise ican financial aid to Hanoi. escape the new Vietnam. Perhaps the most have been. The Congress should seize on Vietnam is a closed society, and it is diffi­ remarkable of these is Nguyen Cong Hoan. every possible device to lower payroll taxes cult for international observers to monitor Hoan was a member of the National As­ (mainly for social security but also for un­ the status of human rights there. But the sembly in Hanoi, and had previously been a employment insurance) which add enor­ reports of those who have reached the West leader of the "peace bloc" in the South Viet­ mously to labor costs, which are of course after living under the Hanoi government-­ namese legislature. Despite his favored posi­ the prime element in prices. sometimes confirmed by Hanoi itself or by tion he eventually concluded that the new Western journalists permitted to enter the government was "the most inhuman and A flnal point on cost. The Budget country-indicate the following: oppressive regime" Vietnam had ever known. Committee recently reported a second First. As many as 300,000 prisoners may With three other antiwar activists he escaped budget resolution that projects a defi­ still be held in "re-education" camps. The in a small boat, leaving his family behind, cit for fiscal year 1979 of $43 billion. My inmates range from political activists of all to call world attention to the "total sup­ amendment is contemplated in that sorts, including many former Viet Cong, to pression of human rights" by the Hanoi those who are highly educated or have West­ regime.6 figure and will not add anything to that ern ties. Most are charged with no crime. Other refugees confirm what Hoan told a deficit amount. Forced labor and malnutrition are the norm congressional committee in 1977: In 1977 I joined with many of my in the malaria-infested camps. In Vietnam today, it is the dictatorship colleagues in increasing social security Second. Prior to the Communist takeover, of the Communist Party. The government payroll taxes to insure the financial in­ there were 27 daily newspapers in South Viet­ can arrest, execute, deport, expropriate, tax, tegrity of the system. The legislation nam. Now there are three. The government withdraw rice allowances, fire from employ­ owns all forms of communication. Even pri­ ment, ban from schools, forbid traveling and did put the system back on sound finan­ vate ownership of typewriters is effectively do many more things to the people without cial ground but I believe many of us banned. Most books and periodicals were specific charges or explanation... All basic know that our reform of social security burned shortly after the takeover. rights are suppressed. No one has the right has not ended but, rather, has just be­ Third. Freedom of religion has also been to express any thought, idea, misgivings gun. I believe we need changes and re­ extinguished. In protest of Hanoi's anti­ that are contrary to the official line. Whoever ductions in some benefits and partial religious policies, many Buddhist monks and. does will be considered "reactionary" and changes in the method of financing. nuns have burned themselves to death, will bo sent to "re-education camps." 1 though this grim fact has received compara­ Both last year and earlier this year seri­ tively little attention in the West. THE CONCENTRATION CAMPS ous attempts in the Ways and Means Fourth. More than a million people have Postwar Vietnam's labor camps are note­ Committee to finance part or all of the been moved to the desolate rural "New Eco­ worthy if only for the sheer number of pris­ disability and/or medicare programs nomic Zones" in emulation of the mass relo­ oners held. "Never have we had such proof through general revenue failed by close cations that have taken place in Cambodia. of so many detainees," writes Jean Lacou­ votes. There is deep disagreement on Agricultural production has fallen dramati­ ture, a French journalist who had been sym­ whether and exactly how general reve­ cally, and the Vietnamese economy is a dis­ pathetic to the Viet Cong. "(Not) in Mos­ aster area. cow in 1917, nor in Madrid in 1939, nor in nues should be infused into the social Fifth. Though Hanoi does everything in its Paris or Rome in 1944, nor in Peking in 1949, security system. While this debate and power to enforce its ban on emi5ration, nor in Havana in 1959, nor in Santiago in the discussion of modification of benefits 3,000 people a month still risk their lives 1973." s Lacouture estimates the number is carried on in Congress in coming to escape, many hundreds of them prefer­ held at 300,000 or more, as does Father Andre months it is vital that we somehow ring to perish in the open sea than to con­ Gelinas, a Jesuit priest who spent more than partially relieve taxpayers from the tinue living under Communism.1 a year under Communist rule in the South.9 10 significant tax increases that we could WESTERN REACTION Hanoi itself admits to holding 50,000. According to Gelinas, former American agree on. To do less is to further ag­ A notable We3tern reaction to revelations officers' quarters have been converted into gravate inflationary trends which will of this sort occurred in December, 1976, prisons, and as many as 26 prisoners are now add further woes to an already troubled when about ninety former antiwar activists held in the space once allotted to one economy.e filed a protest with Hanoi's representative American soldier. Two new jails have risen at the United Nations. Signers of the docu­ near Saigon. Most of the prisoners, however, ment included Joan Baez, Allen Ginsberg, ACLU head Aryeh Neier and New York City are not held in urban jails but in rural "re­ VIETNAM REVISITED Council President Paul O'Dwyer. education" camps. Their number and location The letter accused the Hanoi regime of are kept secret, but refugees estimate that there are at least 60-90 camps, each with a "gross abuses" and "grievous and systematic 11 HON. ROBERT K. DORNAN violations of human rights." It said that the minimum of 3-4,000 inmates. OF CALIFORNIA antiwar activists had been "deeply saddened The victims are by no means limited to IN THE HOUSE OF REPRESENTATIVES to hear of the arrest and detention of a supporters of the old government. Theodore wide range of persons, including religious, Jacqueney of Worldwide magazine names Tuesday, August 8, 1978 cultural and political figur.es who opposed several dedicated opponents of the Thieu e Mr. DORNAN. Mr. Speaker, "Viet­ the Thieu government despite considerable regime now reportedly dead or in prison. political risks." Among them: Senator Bui Thong Huan, nam" is a word our country usually asso­ second-ranking leader of the An Quang Bud­ ciates with the recent past--with a trau­ The protest demanded that Hanoi allow on-the-spot inspection of "re-education" dhist bloc of anti-war senators; Deputy matic period now behind us. Unfortu­ (labor) camps, give an accounting of those Tran Van Thuygen, chairman of opposi­ nately, though, the trauma is not behind tion block in Saigon's National Assembly; us at all. It continues today in the form Footnotes at end of article. and Father Tran Huu Thanah, a radical August 8, 1978 EXTENSIONS OF REMARKS 25017 preacher of "social gospel." Many dissidents eucalyptus bark instead. From about dawn An Quang sect at Can Tho in November imprisoned by Thieu, such as Deputy Tran to dusk without a break he cleared the 1975.31 The self-immolation of Buddhist Ngoc Chau, have been sent back to the woods.20 monks in the early sixties helped turn world same jails, with one difference: the Com­ Another form of labor common in the opinicm against the Diem government. But munists have bricked over the cell windows camps, refugees report, is mine-field sweep­ the recent suicides, dramatic as they are, for greater security.12 ing. Unskilled civilians-often those prison­ have been virtually ignored by world opinion. As former deputy Hoan told a congressional ers who have proved troublesome to their One of the most effective methods of con­ committee: captors-and must go into the mine-fields to trolling the public was the "census" of 1976. Individuals and political parties once locate and defuse the weapons.21 As Gelinas describes it: involved in the preservation of democratic Such macabre tasks are carried out under The form which you had to fill out con­ liberties in South Vietnam, even those closely the slogan "labor is glory." As the official sisted of seven or eight pages in which you allied with the National Liberation Front Saigon Giai Phong newspaper puts it, labor were absolutely required to describe your and the Provisional Revolutionary Govern­ has the "power of cleansing these stains from monthly activities during the last seven ment, are behind bars ... Most will be kept them and transforming them into clean years, where you lived, what you did, what indefinitely in "re-education camps" and persons." 22 you thought, and why you thought it, the many are deported to the North.1a Any time left over from labor is usually names of people you know and of those for Nor are the VietCong themselves immune. devoted to "re-education." Part of this is the whom you worked, your political opinions, Gelinas speaks of the "systematic elimina­ confession, or 'self-criticism": the prisoner etc. On each form you had to list the names tion" of the old Provisional Revolutionary must list all his past misdeeds and improper of five people who could guarantee the accu­ Government (PRG), ·beginning in the sum­ attitudes. Inmates must write such confes­ racy of your statements. mer of 1975. Their positions have been taken sions often, up to several times dally, and But this form was merely a preliminary by Northerners. u omitting a detail included in an earlier ver­ draft. You had to read it publicly before the The total number imprisoned for "politi­ sion leaves one open to severe reprimand or assembled members of your To (neighbor­ cal" offenses is less than the ·number held worse. hood council), and if your neighbors thought for being too highly "educated" in some The bala~ce of the "re-education" process there were errors or omissions they could way or another. This can mean, for example, consists of minute study of propaganda text­ correct them. The chief of the To would then knowing a foreign language or having the books. Each paragraph is studied for days at approve or reject your census form and only equivalent of a high school education. From a time.23 then could you make a clean final copy; but 60 to 85 percent of the "educated" in Sa!~on GOVERNMENT CONTROL OF OPINION you had to do this before a kind of jury of have been sent to the camps, Gelinas esti­ four or five civil servants. That could take Although this "re-eduootion" is supposed take four or five hours, after which you ma.tesP to be the justification for the camps, it dif­ Arrests usually take place late at night or fers little from the propaganda effort in the turned in your form, but without being able at dawn. Rarely are there any specific to keep any notes. country at large. Everyone is expected to And there is the catch. Because ten days charges. Sometimes the victim is summoned attend political meetings, sometimes daily. to a police station, or told to pack for a later you have to answer the same questions The agenda includes informing on one's without crossing yourself up; and then the ·few weeks' trip. Attempts to escape are gen­ neighbors, as well as listening to official erally futile, as a thorough system of sur­ questions must be answered yet a third time, propaganda.24 after the authorities had checked over all the ve111ance, internal passports and rice ra­ The authorities are making strenuous tioning enables the state to keep track of rest of your family. "Your sister-in-law was efforts to gain control of public opinion. Be­ a secretary for a French company and you one's whereabouts.la fore the Communist takeover, there were 27 Inside the camps conditions are grim. To didn't say so. Why? And the six months you daily newspapers in four languages. Now spent in the army. Have you forgotten quote refugee Tran Van Son, the inmates' there are three. Before, there were three "unique concern is how to survive the them?" And your brother-in-law, uncle and television and two dozen radio stations. Now aunt go through the same paces. So by collat­ camps." 17 Death from malnutrition and ma­ there is one TV station, which broadcasts for laria is common, refugees report, and the ing all such information, by working through two hours each morning, and three radio sta­ millions of forms, the authorities are able to overcrowded, unsanitary conditions lead tions. Both newspapers and broadcast media many to insanity. Talking to other inmates know everything about everybody.32 are run by the government, and are little Every aspect of life is subject to state is forbidden in some camps; offenders are more than propaganda outlets. All back is­ sent to the "dark rooms," dungeons where control. Choice of occupation, choice of resi­ sues of the old newspapers have been burned. dence, choice even of what clothing to wear, there is no light or ventilation and no sani­ It is illegal to listen to foreign radio, or to tary fac111ties.Is all have disappeared. "Western" habits are fall to inform on those who do.2il being extirpated. Soldiers occasionally board One frequent way out of the camps is Soon after the takeover the Communists suicide. "Many people hanged themselves," public buses and clip women's nails if they ordered most books on controversial topics seem too long, according to Gelinas.aa according to a doctor interviewed by Jac­ burned-and most topics were controversial. queney: Huge bonfires of proscribed books lit the "NEW ECONOMIC ZONES" (One man) returned to Vietnam on the streets of Saigon. Each family must now sub­ The major fear of Saigon residents is Thuong Tin ship, the one that came back mit to the state a list of the books it owns. neither the rigors of city life nor the labor from Guam when some refugees changed Private ownership of typewriters has been camps, but the "new economic zones." These their minds. He hanged himself in his prison effectively outlawed as well.2G are duplicating, on a smaller scale, the ex­ cell. His name was Lt. Tran Tin Viet. This Religio;n is persecuted. There are 200-300 periments of neighboring Cambodia in forced time they let me try to treat him, and I gave priests and six bishops in jail. Treatment of. relocation. him mouth-to-mouth and first aid. I asked Buddhists is still harsher, as they have little Ostensibly the "New Economic ZOnes" are them to let me send him to a hospital. They recourse to world opinion. But Christianity is pleasant rural areas being developed by teams refused to permit it, although I think I under fire too. By the end of the "five year of urban workers. The· reality, according to could have saved him in a hospital. He plan," in 1982, it is scheduled not to exist. most refugees, is one of famine, epidemics, needed oxygen to reanimate. Without it he Teaching religion to children is prohibited.27 wretched living conditions and complete died the next day.1D A number of Western religious groups have servitude. Often virtually no constructive Nguyen Van Col, an escapee from one of claimed that the Hanoi regime tolerates re­ work is accompllshed.u the camps, testified before Congress in June ligio;n,28 James Klassen of the Mennonite Some 3,000 persons a day leave Saigon for 1977. His description is a typical one. In Central Committee, for example, does "not the zones. In 1976, when more than a million Long Xuyen prison he was fed two small feel that there was any systematic repression had been relocated, officials predicted that bowls of rice daily with a little salt. His cell of religion by the government." He bases this another eight m1111on would eventually be measured 11' by 22'; it held 81 prisoners. He view largely on the experience of his own moved to the zones.35 could not lie on his back while sleeping for congregation, which cooperated enthusias­ Many in the South are simply ordered out lack of room. Two small air holes provided tically with the government and was allowed of the cities where they have spent their ventilation; there were no windows, and the to conti;nue meeting. Still, Klassen admits lives; others are persuaded to go by means door was kept closed. Occasionally, for as that distribution of religious tracts is now of coercion so strong as to be almost worse little as fifteen minutes a week, the prison­ illegal, that all church meetings must be reg­ than explicit dictates. Sometimes wrecking ers emerged from the dark cell into blinding istered with the state, and that the govern­ crews have been sent to demolish the homes sunlight. The toilet in the cell gave off a men propagandizes against religion.29 of those who delayed in "agreeing" to leave.se hideous stench, and was clogged with fly lar­ Col reports that most of the "churches" Other recalcitrants are deprived of food vae which could not be kept out of the ears shown Western visitors are now used exclu­ rations.37 and mouth at night. sively for political meetings. Bach Mal was The positions of those sent to the zones Col said he was later transferred to two Hanoi's only remaining church when it was or camps are often taken by Northerners. As camps even worse than Long Xuyen. In the converted into a hospital; worsl:iippers must Tiziano Terzani puts it in the New York mosquito-infested U-Minh forest, no actual now meet in an alley.ao Review of Books: "Many thousands of people camp had been set up, and prisoners were The most striking reaction to persecution from the North (some estimates put the chained to tree trunks. Col's original clothing of religion in Vietnam has gone almost un­ figure as high as half a million) have been was gone by this time, and he used strips of noticed in the West. Many Buddhist monks imported to take over the responsibilities for and nuns have burned themselves to death administering many aspects of life through­ Footnotes at end of article. in protest, including twelve ~mbers of the aut the South." 38 25018 EXTENSIONS OF REMARKS August 8, 1978

ECONOMIC WOES us, were we Vietnamese," Worldview, April logical genius, because of the public outcry 1977. about it, is regarded in the NATO High Com­ With the South's leading cities being de­ mand as one of the greatest psychological populated, it is little wonder that the ·econ­ o Fr. Andre Gelinas, New York Review of omy is staggering badly. Factories and Books, March 17, 1977. victories over the West ever achieved by the 10 Jacqueney, Zoe. cit. Soviet government. hospital equipment have been removed in Dr. Joseph Luns, the respected Dutch sec­ quantity and taken to the North.39 Gelinas n Fr. Andre Gelinas,· Hearings befo!'e the International Operations Subcommittee, retary general of the North Atlantic Treaty reports: "There is no famine: but many live Organization, and General Alexander Haig, in misery. The two staple foods are rice and House International Relations Committee, p. 22. the impressive American Supreme All1ed the Chinese potato, the Khoai-mi, which is Commander, Europe (SACEUR), told me that normally eaten by animals but is now mixed 12 Jacqueney, op. cit. 13 Hoan, Hearings, p. 147. Soviet propaganda and naive idealists had with rice to make it go further ... dogs and succeeded in brainwashing the people gen­ cats disappeared long ago; 1f one didn't eat 14 Gelinas, New York Review of Books. 1s Gelinas, Hearings, p. 22. erally in our country and western Europe them, they would be stolen." 40 about this weapon. Fish has become scarce; the state has 18Jbid. 11 Washington Post, April 30, 1978. It all started, according to Dr. Luns, with virtually banned ocean fishing to discourage a Defense Department report on the neutron escape by sea.n The produce of mango 1BJbid. See also Nguyen Van Col, Hearings before the Subcommittee on International weapon published in The Washingtcm Post farmers has been taxed so heavily that they on June 7, 1977. Under a front page headline have cut down the trees for firewood. Pro­ Organizations, House International Relations Committee, June 21, 1977. that said "Neutron Klller Warhead Buried in duction of rice, the most vital foodstuff of all, ERDA* Budget," that story asserted that the 42 10 Jacqueney, op. cit. is suffering for similar reasons. The price of United States was about to begin production 20 Col, Hearings, pp. 74-75. milk has increased sixfold since the take­ of its first nuclear battlefield weapon "speci­ over ..a 21 Jacqueney, op. cit. fically designed to kill people through the Property rights have received the sort of 22 Washington, Post, April 30, 1978. release o! neutrons rather than to destroy treatment typical of communist regimes. 23 Gelinas, New York Review of Books. See military installations through heat and Thousands of suicides followed a 1975 proc­ also New York Times, May 18, 1977. blast." lamation confiscating all but the smallest 24 Gelinas, New York Review of Books. The story thus implied that in the event of holdings of wealth, says Gelinas." Ironically 23Jbid. and Gelinas, Hearings, p. 8. war President Carter and our mllltary leaders for those who saw "corruption" as one vice 26 lbid. planned to k111 people with nuclear radiation from which the Communists would at least 2e Nguyen Con Hoan, "The Current Situa­ in order to save m111tary installations from be free, Vietnam has gone on what the tion of Religions in Vietnam," May 22, 1977. destruction. washington Post calls a "corruption binge." See also Hearings, pp. 103 and 151. The Soviet government seized on this mis­ Hanoi itself complains that such offenses as 28 See, for example, Bragg, op. cit. leading report to launch what Secretary Gen­ bribery and embezzlement "are increasing in !:9 James Klassen, "Religion in Vietnam eral Luns described as one or the greatest both frequency and seriousness," and says Today," available from American Friends propaganda campaigns ever conducted corrupt officials have been imprisoning those Service Committee. against the West on a m111tary issue. He said who refuse to pay bribes. A medium-sized 3o Col, Hearings, p. 137. the campaign influenced "to a very great family can reportedly buy the right to 31 Jacqueney, op. cit. See also Hoan, "The extent" western public opinion and some "emigrate" in a small boat from a Vietnamese Current Situation of Religions in Vietnam." NATO governments against deployment o! port by paying $6,000 in gold to a "syndicate" 32 Gelinas, New York Review of Books. the weapon in western Euorpe. of bureaucrats.411 33Ibid. See also New York Times, May 18, Moscow's campaign was carried out not Hanoi has not demobi11zed its army, one 1977. only in the West, but throughout the world. of the largest in the world. But it is an army 34 Ibid. It was particularly intense in the communist­ which provides little protection to its own 35 Ibid. ruled countries of eastern Europe. subjects. Cambodian army units periodically 36Ibid. Bernard Kaplan, our Paris-based roving strike across the border to massacre Viet­ 37 Washington Post, April 30, 1978. correspondent, reported from Warsaw in May namese civ1lians, committin~ such atrocities as New York Review of Books, June 15, 1976. that an all-out propaganda crusade was as dismemberment and mutilation of women 39 Gelinas, New York Review of Books. under way to convince the Polish people the and children. According to Terzani in the 40 Ibid. United States was planning to lower the nu­ Washington Post, the Vietnamese govern­ 41 Ibid. See also Vietnam News, November­ clear threshold (a term meaning: making ment has tried to ignore these attacks in December 1977, newsletter of the American nuclear warfare more likely) with a fiendish order to avoid a quarrel with Cambodia's Vietnamese Association. new nuclear weapon that would annihilate Chinese ally.4e Before the worsening of rela­ 42 Ibid. people with radiation. tions between the two governments in April 43 Terzani, New York Review of Books. No nightly television news program was 1976, incidentally, Vietnamese authorities 44 Gelinas, New York Review of ·Books. complete wJ.thout a film report from fac­ forcibly repatriated thousands of Cam­ 45 Washington Post, December 25, 1977 and tories or farms featuring workers supposedly bodians who had fled that country's repres­ July 16, 1977. protesting against the American threat. The sive regime. All, the Post reports, were 41 Ibid. newspapers frontpaged daily reports of popu­ promptly killed by Phnom Penn's rulers.47 48 Washington Post, December 30, 1978.e lar indignation. Walls of buildings in Soviet­ If any good can be said to come out of an bloc towns and cities were plastered with experience like Vietnam's, perhaps it will "anti-N bomb" posters. Moscow radio blared take the form of a more realistic American MORE ON NEUTRON WARHEAD denunciation of the American plan in 100 view of the consequences of Communist take­ different languages. overs. As Rev. Richard Neuhaus of Clergy One of my reasons !or coming to Brussels and LaJty Concerned, one of the antiwar ac­ HON. ROBERT J. LAGOMARSINO from the economic summit conference in tivists who signed the protest of December OJ? CALIFORNIA Bonn was to find out what the NATO chiefs '76, said: "We wanted to believe desperately­ responsible !or protecting western security so desperately-the pledge and the promises IN THE HOUSE OF REPRESENTATIVES thought about this controversial weapon. of respect that would be shown (by the Com­ Tuesday, August 8, 1978 I was curious because, with all due mod­ munists) toward human beings and human esty, I wondered at the time of the outcry, rights."48 That belief has been rudely shat­ e Mr. LAGOMARSINO. Mr. Speaker, I particularly by the naive and so-called liberal tered by the grim experience of Vietnam.­ wish to call the attention of my col­ element in our society, whether it was justi­ By Walter Olson; research by Robert Johnson leagues to this informative article writ­ fied. and Tom Humbert, Policy Research Staff. ten by William Randolph Hearst, Jr., When the Soviets launched the hysterical FOOTNOTES concerning the enhanced radiation war­ propaganda campaign against the weapon, 1 Washington Post, April 30, 1978. head. my suspicion became thoroughly aroused. a Washington Post, December 30, 1976. RED PROPAGANDA VICTORY When Moscow starts to scream about some­ 3 New York Times, January 30, 1977. (By W1111am Randolph Hearst, Jr.) thing we plan to do, I have learned that if 4 Quoted in Human Events, April 8, 1978. it's bad for the Kremlin, it must be good for BaussELs.-Visits this week with the two G Carol Bragg, "Vietnam Two Years Later," us. leaders who run the show politically and American Friends service Committee, April So Joe Kingsbury Smith, our national edi­ 1977. militarily at NATO revealed to me an aston­ ishing story of how the American and western tor, and I s01.1ght the opinions of Dr. Luns e New York Times, May 18, 1977. See also European people were misled about a nu­ and General Ha.ig. First o! all, I asked 1f it Nguyen Cong Hoan, Hearings before the :":n­ clear weapon that is far less dangerous and wasn't a misnomer to call the weapon a ternational Organizations Subcommittee, far more humane than others the United bomb. House International Relations Committee, States has poised to use in Europe today. "Absolutely," General Haig replied. "It's a Human Events, July 26, 1977, and August 6, This is the so-called neutron bomb-which warhead that has been developed !or two 1977. isn't a bomb at all. It is an artUlery shell systems. One is the so-called Lar.ce missile, 7 Hearings before· the International Orga­ warhead. which is a short range, ground-to-ground nizations Subcommittee, p. 146. President Carter's decision in April to defer missile. The other is the 8-inch artillery 8 Quoted in Theodore Jacqueney, "They are production of this !ea. t of American techno- shell. The neutron warhead is a special round August 8, 1978 EXTENSIONS OF REMARKS 25019 to go into that shell. Both the Lance mis­ vantage could be nullified with the tank­ Hence, the Boy Scouts' report may net sile and tr..e 8-inch artillery also fire con­ killing capabUity of the neutron warhead. be printed as a House document, while ventional rounds. The NATO secretary general said the west­ the reports ol other federally chartered ''The NATO mil1tary authorities have ad­ ern public has been so misinformed about organizations of' much shorter tenure, vised their political masters that this en­ the weapon, and so influenced against it by hanced radiation warhead is a desirable mod­ SOviet propaganda, that it will probably be may. ernization step that the Atlantic alliance diftlcult for President Carter to proceed with The Boy Scouts are proud of their should have on military grounds. Contrary production of it. · Federal charter and have always felt to what has been published about it, it does Developed by the British as an offensive honored to have their report produced as not lower the nuclear threshold." weapon in World War I, the tank was the an omcial congressional document. I am Secretary General Luns, whom we inter­ spearhead of Hitler's blitzkrieg breakthrough sure my colleagues are, likewise, proud of viewed at NATO headquarters just outside on the Russian and Western front in the the Boy Scouts of America and the great Brussels, was even more explicit. He said second World War. Again in 1944 it was the positive influence they exert on the youth the name "bomb" was invented by The weapon with which General Patton broke out Washington Post. It is not the proper name. of the Normandy beachhead and which led of America, and so it is fltting that the The proper name is reduced-blast-and:-en­ the allied armies , to victory over Nazi House of Representatives has agreed to hanced-radiation "shell." Germany. reinstate the printing of · their report as "Because of the article in The Washington Gen. Haig told us the SOviet bloc forces on an omcial congressional document. I Post, followed by an an-out SOviet propa­ the centrl\1 European front now have "a thank and commend my colleagues.• ganda campaign, the public got the impres­ three or four to one superiority" over the sion that this was a more terrible weapon NATO force~;. The offensive nature of that than we already have in our nuclear arsenal. tank buildup could not be more clear, so you RETIREMENT OF J. BURKE KNAPP, "Quite the contrary, it is far less danger­ don't have to be a military expert to realize VICE PRESIDENT OF THE WORLD ous, particularly" for the civ111an population, how essential it is that our forces be supplied BANK . than the regular nuclear warheads we now with the neutron warhead-the most effec­ have in our artillery shells. It has no radio­ tive anti-tank battlefield weapon ever active fall-out to contaminate the a.rt;mos­ devised. HON. CHARLES W. WHALEN, JR If this report encourages you to write to phere. It has very little explosive power so OF OHIO that the blast effect is greatly reduced. the president urging him to go ahead, and Gesturing with his hands. Dr. Luns ex­ explain to all of us why ·he is doing so, I IN THE HOUSE OF REPRESENTATIVES plained that when the neutron warhead shell shall feel that I have rendered a service to Tuesday; August 8, 1978 explodes over a pinpointed target, such as a my country. covey. of enemy tanks, the radiation "goes We also talked to Dr. I,.uns and General • Mr. WHALEN. Mr. Speaker, the inter­ straight down." Haig · about the strength and weakness of national community has lost the services NATO at present and in the foreseeable of a distinguished public servant, J: "The radla.tion." he added, "will penetrate future. Joe will be reporting on their enlight­ the armor and kill the crew inside. It will Burke Knapp, who retired on June 30 kill everybody in the immediate vicinity, ening and important views in a series of articles which will appear in The News Amer­ as Vice President of the World Bank. itt but has no fall-out and very little blast ican this coming week. I just want to say that Mr. Knapp joined the Bank in late power. although I was raised an isolationist, my Pop 1949 as Assistant Director of the Eco­ "It will not spread nuclear radiation over a having shared George Washington's belief nomics Department. In the fall of 1952, widespread area, or send it up into the that we should stay out of entangling foreign he was named Director of Operations of clouds to be carried around the world, as alliances, times have changed. the Western Hemisphere Department the nuclear warheads we now have will do. In view of the clearly apparent SOviet (now the Latin America and Caribbean It is therefore far less dangerous, far less threat to extend its imperialistic domination damaging and far more humane than the over the world, I believe Pop would have Regional Office). Four years later, in tactical nuclear weapons we now have. agreed with me that the Atlantic alliance July of 1956, he became a Vice President, "If we had this neutron warhead today and is America's first line of defense. The least one of three appointed that year, and in the world heard the United States was de­ we at home can do is supply these shock October 1972, Mr. Knapp assumed the veloping a new weapon with the radioactive troops with the most effective weapons position of Vice President of Operations fall-out, widespread radiation impact and available.e of the World Bank. ' enormous blast power of the warheads we In the post. Mr. Knapp examined in now have ready to use, you can imagine detail every project that was considered whwt world-wide protests there would be. AMENDMENT TO FEDERAL CHARTER for World Bank and International De­ The neutron warhead would greatly lessen the lethal danger of the tactical nuclear OF BOY SCOUTS OF AMERICA velopment Agency creativity and leadership guided the deterrent to a SOviet bloc a.rt;tack against World Bank-IDA through extremely western Europe. HON. CLARENCE J. BROWN difficult political circumstances and al­ "Opponents argue that it lowers the atomic . OF OHIO lowed the Bank to remain the world's threshold because IJt is a weapon which the IN THE HOUSE OF REPRESENTATIVES foremost international financial institu­ allies are likely to resort to more quickly. We tion for development. already have nuclear weapons which lower Tuesday, August 8, 1978 J. Burke Knapp's academic and pro­ the threshold far more than this weapon e Mr. BROWN of Ohio. Mr. Speaker, I fessional distinctions are many. He was would. We have atomic demolition charges would like to express my sincere appre­ named a Rhodes Scholar and studied at to close mountain passes and wtomic depth ciation to my colleagues for their unani­ charges to destroy enemy submarines, both Oxford for 3 years, after graduating with with far more radioactive contaminating mous consent yesterday to the amend­ honors titles of this SEAT BELT'S VALUE Is AGAIN REINFORCED By contrast, four of the unbelted occu­ pants received serious back injuries. measure: General provisions, communi­ BRITISH STUDY DRAMATICALLY SHOWS SAVING In the entire study "no cases were iden­ cations regulatory commission, broad­ EFFECTS tified where the occupant would have been casting, and administrative procedures. (By Lloyd Timberlake) safer not wearing a seat belt," Hobbs SECTION-BY-SECTION ANALYSIS LONDON.-Safety belts have been found to concluded.• TITLE I-GENERAL PROVISIONS cut in half the number of serious and fatal injuries in highway accidents, according to Sec. 101 contains a statement of findings one of the most exhaustive studies ever made and purpose for the Act. of car seat belts. REPUBLIC OF CHINA RESOLUTION se~. 102 establishes the jurisdiction of the If every car driver and passenger tn Brit­ Commission to extend to (1) any interstate ain wore seat belts, more than 12,000 deaths or foreign telecommunications which orig­ and serious injuries a year would be averted, inate or are received within the United reducing the annual cost of road accidents by HON. ROBERT K. DORNAN States or which are both originated and re­ about $140 million, wrote Adrian Hobbs in a OF CALIFORNIA ceived within the United States; (2) any report for the National Transport and Road IN THE HOUSE OF REPRESENTATIVES person engaged within the United States in Research Labortory. such telecommunications; and (3) the li­ "If only an 85 percent wearing rate were Tuesday, August 8, 1978 censing and regulation of broadcasting and achieved, which is a more realistic figure, • Mr. DORNAN. Mr. Speaker, last week, nonbroadcasting radio service. The provi­ the potential further saving of 9,000 (deaths I joined with Mr. STUMP of Arizona in sions of the ·Act do not apply (and the Com­ and serious injuries) would still be consider­ mission is specifically precluded from regu­ able." he added. introducing a House resolution on the lating) any Intrastate telecommunications Yet despite gruesome billboard and tele­ status of the U.S. relationship with the fac111ty or service 1! (1) there is no use of vision advertisements here showing women people of the Republic of China. The the spectrum in the direct distribution of with multilated faces and tenage boys sitting resolution provides for the maintenance such service to the consumer and (2) the in wheelchairs beside soccer fields--all due of full diplomatic relations with theRe­ person providing such service does not re­ to the lack of seat belts-the 1977 wearing public of China and the Mutual Defense ceive a disbursment !rom the Universal rate ranged !rom 25 percent in urban areas Treaty of 1954, regardless of any initia­ Service Compensation Fund. to 44 percent on highways. Sec. 103 contains definitions of certain tives that the administration may choose terms used in the Act. British cars are required to have seat belts, to but, despite evidence of improved highway make toward the People's Republic TITLE n--cOMMUNICATIONS REGULATORY safety figures in countries where the wearing of China. COMMISSION of belts is compulsory, Parliament has repeat­ It is my sincere desire that the people Sec. 211 establishes a new independent reg­ edly refused to pass such a law, largely be­ of the Republic of China will escape the ulatory agency [replacing the Federal Com­ cause of arguments that the individual has pains of pragmatic diplomacy. At this munications Commission, see §803] called the right to chose his own safety device. point, I should like to insert the content the Communications Regulatory Commis­ In his study. Hobbs examined 2,789 people sion (CRC). involved in 1,100 accidents, doing a computer of the resolution into the RECORD: H.REs.- sec. 212. The ORO shall be composed of analysis of 800 pieces of information on each five Commissioners appointed by the Presi­ of the automobile occupants. Whereas, the maintenance of peace and dent by and with the advice and consent of "Nearly half of the injuries more severe security in the Western Pacific is in the para­ the Senate. than minor were saved by the wearing of a mount interest of the United Sta.tes, The CRC Chairman shall be designated seat belt, and the proportion escaping injury Whereas, the Republtc of China has been by the President with either House of the altogether rose,from 28 percent (unbelted) to a long-standing friend and faithful ally of Congress able to disapprove of such designa­ 42 percent (belted) ;• he said. the United States both tn war and peace, tion Within 60 days of the submission of the "The most commonly injured region of the Whereas, the Republtc of China preserves nomination. body was the head. Over hal! of the un­ the tradittonal cui ture of the Chinese peo­ Commissioners shall be appointed to terms belted occupants received a head injury ple, upholds baste human rights, believes tn compared to just over a quarter of those who of ten years and limited to one term, unless were belted." the system of free enterprise and serves as a appointed to fill a vacancy in which the pe­ major trading partner of the United States; riod of the unexpired term is less than· five To counter arguments that tt ts sometimes and years. better to be hurled from a car in a collision. Whereas, the · Republtc of China provides No more than three Commissioners may Hobbs found that of the 68 people he studied the United States with a strategically crucial be members of the same political party. Com­ who were thrown from their cars, more than base from which the latter can help 1n the mission members must be appointed on the a quarter of them were fatally injured, ac­ defense of the free nations in the Western basis of their education, experience or train­ counting !or half the deaths in the survey. Pacific. ing and the overall composition of the Com­ "From this it would seem desirable for oc­ Be it resolved that it is the sense of the mission must reflect a balance among pro­ cupants to be retained and restrained inside United States House of Representatives that fessional backgrounds. the car in the accident and that almost al­ the United States, wh11e seeking to improve Sec. 213. The CRC must organize Itself ways injuries wlll be more severe 1! the oc­ relations with the People's Republtc of China, within six months of enactment into neces­ cupant ts thrown out of the car," Hobbs said. shall continue to maintain full diplomatic sary bureaus, divisions, or offices in order to Only three of the accident victims studied relations with the Republic of China, shall carry out its functions. August 8, 1978 EXTENSIONS OF REMARKS 25023 Sec. 214 provides that the commission fidential. The CRC is prohibited from with­ on competition to provide efficiency, innova­ must carry out a zero-based, comprehensive holding information from Congressional tion, and low rates; (4) establlsh full and fair review of its entire organizational structure Committees. practices which exclude competition. at least once every ten years and submit Sec. 252 sets forth additional functions and Sec. 332 allows any common carrier to hold such review to each House of the Congress. powers of the Commission. or acquire shares of any separate company Sec. 215 establishes within the CRC an Of­ Sec. 253 provides that the CRC Chairman which provides any service or offers any prod­ fice of Consumer Assistance which is headed shall be the principal executive officer of the uct which the Commission has determined by a director who shall be appointed by the Commission and sets forth specific powers to be telecommunications or incidental to Chairman with the approval of the remain­ and duties of the Chairman. telecommunications. der of the Commission. The Office is subject Sec. 254 authorizes the Commission to en­ Sec. 333 provides that, after three years only to the general control of the Commis­ ter into and perform contracts in order to from the date of enactment of this Act, no sioners. carry out its functions. person provide a noncompetitive service and The Office has the general responsibllity Sec. 255 requires that CRC budget esti­ also be engaged in manufacturing equipment to promote the interest of consumers in all mates and legislative recommendations be used in furnishing any common carrier matters under the jurisdiction of the CRC. transmitted concurrently to the President service. Budget requests for the support of the (or OMB) and to the Congress. Sec. 334 requires the payment of an access Office specifically must be identified by the Sec. 256 allows the Commission to make charge by any person who provides an inter­ Commission in each authorization or ap­ internal adjustments in its annual appro­ city telecommunications service or fac111ty propriation request. priations up to five percent. which is physically connected with local ex­ Sec. 221 provides that each Commissioner Sec. 257 declares that CRC appropriations change switching fac111ties and plant. The may appoint up to five personal staff mem­ are subject to the annual authorization Commission shall determine the access bers. The Commission is granted authority process of the Congress. charge and shall establish a fund (Universal to hire and pay personnel from a broad va­ Service Compensation Fund) with the riety of backgrounds in order to carry out TITLE III--cOMMON CARRIER TELECOMMUNI­ moneys received which shall be used to main­ the functions of the Commission. CATIONS tain telephone rates at affordable levels and Sec. 222 provides that the CRC may obtain Part A-GeneraL provisions assure the availablllty of basic voice tele­ the services of experts and consultants. Sec. 311 provides that the Commission shall phone service. The Commission is required Sec. 231 establishes confiict of interest determine whether any person is a common to establish the fund and report to Congress rules and requirements for the CRC, carrier, shall classify carriers and services, on the method for calculating the access Sec. 232 prohibits Commissioners from en­ and may exempt any of these classes from charge and on the guidellnes and conditions gaging in any other business, employment, the requirements of the title. The Commis­ for distribution within one year after the etc. Both Commissioners and supervisory sion must review its determinations under date of enactment. employees may not have any financial inter­ this section at least once every 5 years and Sec. 335 requires carriers to give notice to est in any business concern (or other en­ must make an annual report to the Congress. the Commission of any faclllties construc­ tity) which is subject to CRC regulation. The Sec. 312 requires all carriers to furnish tion, acquisition, or extension. Commission may waive the financial interests service and to establish connection (unless Sec. 33~ establlshes nrocedure.s relating to provisions where hardship would result or the Commission finds that the connection the extension and discontinuance of faciU­ the interest is a pension, insurance, etc. would result in substantial harm to the car­ ties and service. Sec. 233 requires Commissioners and su­ rier which outweighs the potential benefits Part C-International common carrier to the public). All rates and terms must be pervisory employees to disclose the amount Subpart 1-General Provisions and source of income received by them, their equitable and there is a presumption that a spouses, or dependents from any telecommu­ rate or term is equitable unless the service Sec. 351 sets forth the findings of Congress nications entity, as well as the identity and involved is noncompetitive. that it is the policy of the u.s. to participate value of any fin'lncial interest held in any Sec. 313 requires carriers to file with the in international satellite systems through a telecommunications entity Commission, and make publlc, a schedule private corporation, that faclllty planning Sec. 234 requires Commissioners and super­ showing rates and terms for any service. This and construction should be consistent with visory employees to report previous employ­ section provides for a 45-day notice period. U.S. foreign nolicy, insure reliable communi­ ment with concerns regulated by the Com­ The Commission is authorized to modify the cations at the lowest possible rate with mini­ mission, if they received compensation in ex­ requirements of this section to meet special mum restraints of trade, and that the flow cess of $2500 in any of the previous five cal­ circumstances. of information across national boundaries endar years. Exception is made for informa­ Sec. 314 authorizes the Commission to hold should not be restricted. tion pertaining to confidential relationships a hearing on any rate. The burden of proof Sec. 352 sets forth the internal definitions in previous employment. is on the carrier to demonstrate that a rate for this part. Sec. 235 soecifies that reoorts filed under is equitable and lawful except that a rate is Subpart 2-Industry Structure presumed to be equitable and lawful if the the confiict of interest sections 233 and 234 commission fails to make a decision within Sec. 361 provides for U.S. participation in must be made aV>ailable to the publlc for a 9 months' after the rate is designated for INTELSAT and INMARSAT through COM reasonable fee. Reports need be on file for SAT, which shall be the sole U.S. representa­ five years. hearing. The Commission may require an ac­ counting order and may order refunds if a tive in such organizations. Sec. 236 nrohibits Commissioners who do rate is found to be inequitable or unlawful. Sec. 362 requires COMBAT to establish a not serve the full term for which they are ap­ The Commission may prescribe an equitable separate subsidiary for the provision of serv­ pointed (for a one-year period following and lawful rate if it determines that a rate ices (other than JNMARSAT services). COM termination of service) from representing filed by a carrier is inequitable and unlawful. SAT may establish and operate earth stations any person before the Commission or advis­ Sec. 315 requires the Commission to pre­ and interconnect them with domestic and ing any person with respect to any matter scribe the forms of accounts and records international service carriers (including the before the CRC. The same prohibition ap­ which carriers file with the Commission. COMBAT subsidiary) and, for maritime serv­ plles to supervisory employees (except con­ Sec. 316 authorizes the Commission to ices, may also connect them with private sultants) who have not served ten or more value property owned or used by a common communications systems. The Commission is years at the Commission. carrier. to determine the operational arrangement for Commissioners and supervisory employees such interconnection. COMBAT. as well as may not participate in any proceeding in Sec. 317 requires the Commission to pre­ scribe depreciation procedures and to review such carriers and systems, may own any such which they have a financial interest. earth stations. Sec. 237 provides that in any ad fudicatory its determination at least once every 5 years to take into account chan~es in the economic Sec. 363 provides that any international proceeding, interested parties must be noti­ or domestic service carrier may accept and fied if ex parte contacts occur after the com­ value of the assets of carriers. Sec. 318 authorizes the Commission to re­ deliver maritime and general telecommunica­ mencement of the proceedin~. Such notice tions services at any point in the United requirements are also mandated for any rule­ quire annual reports from carr!ers and to ob­ tain other necessary information including States. The section further provides that making proceeding in which ex parte com­ Western Union may not en(Zage in interna­ munications occur after the record in such copies of contracts relating to the provision of service. tional transmissions, other than maritime proceeding is closed. services, for a five-year period. Sec. 238 provides that nothing in this Act Sec. 319 establishes the liab11lty of common carriers for damages and provides for the Sec. 364 provides for distribution among shall llmit certain penalties provisions of international service carriers of any tele­ Title 18 pertaining to confiict of interest rules recovery of damages. Part B-Domestic common carriers communciations traffic that originates with and requirements. Western Union. Such interim traffic distri­ Sec. 251 grants the Commission the neces­ Sec. 331 contains a declaration of policy bution is for the five-year period referred to sary authority to do everything to carry out which requires the Commission to ( 1) place in the previous section. the provisions of the Act. The District of maximum feasible reliance on marketplace Columbia is designated as the principal office forces; (2) promote the maintenance of Subpart 3-Industry Government Planning of the CRC, although it may hold sessions nationwide basic voice telephone service at Sec. 371 provides for the establi~hment of in any part of the United States. Information affordable rates through regulation and di­ a task force on international telecommuni­ relating to trade secrets may be kept con- rect assistance (where appropriate); (3) rely cations facUlty planning. Membership on 25024 EXTENSIONS OF REMARKS August 8, 1978 such task force includes rep·resentatives of Sec. 415 prohibits, with certain exceptions, must make announcements regarding pay­ each international and domestic service car­ the Commission from (~ranting to any alien, ment received by them for certain broad­ rier authorized by the Commission to enter foreign gover!l ment or foreign corporation a casts (See also § 546 of this Act] . into agreements with foreign nations, as well license to operate any broadcasting station Sec. 439 requires television licensees to as representatives of the various govern­ or common carrier, aeronautical en route, or provide equal opportunities fo:- political ment agencies that have international com­ aeronautical fixed radio station. candidates, other than candidates for Presi­ munications responsib111ties. Sec. 416 authorizes the Commission to re­ dent, Vice President, Senate or other state­ Subpart 4-Federal Government Regulation quire certain information in license applica­ wide office. Sec. 381 provides that COMSAT or any tions and to grant those applications when­ Sec. 440 provides, with a specific exception common carrier may construct any inter­ ever consistent with the purposes of the for certain radio station applicants, that national telecommunications facility if it Act. only one broadcast station per market may notifies the chairman of the task force, the Sec. 417 provides for cease and desist orders be licensed to any individual. This section President does not disapprove the construc­ and revocations. also prohibits any individual from owning tion for reasons of national security or for­ Sec. 418 authorizes the Commission in more than five radio or five television sta­ eign policy, and COMSAT or such carrier is certain cases to modify a license or con­ tions, except that no individual may own authorized by the Commission to enter into struction permit. or operate more than three television sta­ agreements with the foreign nations that Sec. 419 prohibits the Commission from tions 1:>1 the 50 largest markets. This section requiring any licensee or permittee to supply also requires the Commission to consider propose to construct and operate such facil­ any other media holdings of an applicant ity. Prior to the implementation of any such it with material already in the Commission's facility, COMSAT or each such carrier must files. when determining whether to grant a con­ Sec. 420 prohibits the Commission from struction permit or to renew or grant a notify the Commission of the cost of the fa­ license for a television broadcast station. cility, the circuit capacity, the estimate of censoring or otherwise regulating the con­ tent of any broadcasting or other radio This section does not require divestiture of circuit utilization in such facility for each existing communications combinations but year of its projected useful life, and any other transmissions. Part B-Broadcasting applies only at times of renewal, transfer or information that the Commission may re­ sale. quire. The Commission must investigate the Sec. 431 provides that radio station licenses ut111zaton of each such fac111ty at least every shall be for indefinite time periods subject Part C-Nonbroadcasting radio services five years and compare the estimates filed only to revocation. It also provides that tele­ Sec. 451 requires all persons providing with the Commission with the actual cir­ vision station licenses be granted for periods nonbroadcast radio services to be licensed. cuit utllization. If the estimates for such of time up to five years subject to revocation, The grant of an application is a license for period exceed the actual circuit use by more or denial, provided that ten years from the the actual operatic~. of the facility. How­ than 10%, the Commission must reduce the date of enactment of this legislation the ever, the license shall be forfeited if the valuation of such facility by an amount that Commission shall grant television station fac111ty is not completed for operation by bears the same ratio to the total cost of the licenses for indefinite periods of time. the time specified in the application. This fac111ty as the estimate excess bears to the Sec. 432 requires construction permits. section also sets indefinite license terms for total circuit capacity. Whenever the Com­ Sec. 433 prohibits the assignment or trans­ licenses for certain international telecom­ mission has so reduced the valuation of a fer of any construction permit or broad­ munications facilities and exempts these fac111ty, it must review such action no later casting license until the Commission deter­ facilities from petitions to deny or petitions than two years after the date of the reduction mines that the purposes of the Act will be to revoke. of value. (See also § 451(c) of this Act.] served by such assignment or transfer. This Sec. 452 authorizes the Commission to Sec. 382 sets forth the powers and resuonsi­ section also allows the Commission to con­ grant licenses for nonbroadcast radio serv­ bilities of the President and the Commission, sider whether assignment or transfer of a ices for terms of up to ten years. as well as other government agencies, with television station license to a party other Sec. 453 prohibits the assignment or regard to international communications than t he proposed assignee or transferee transfer of any nonbroadcasting radio policy. would serve the purposes· of the Act. license unless the Commission determines TITLE IV-BROADCASTING SERVICES AND NON­ Sec. 434 provides that the Commission that the purposes of the Act wlll be served shall require television broadcast stations by such assignment or transfer. BROADCASTING RADIO SERVICES Sec. 454 allows the Commission to suspend Part A-General provisions to provide some news, public affairs, and lo­ cally produced programming and to treat a nonbroadcast radio license. Sec. 411 requires all persons providing controversial issues of public importance in Sec. 455 sets forth the requirements for broadcasting or other radio services to be an equitable manner (the "Equity Prin;::i­ licensed operators. licensed and to operate in accordance with ple"). This section also prohibits the Com­ Sec. 456 provides that any shipboard radio Title IV, and prohibits the sale or distribu­ mission from establishing a procedure by station attempting to transmit distress tion of any device which fails to comply with which television broadcast stations must signals may, regardless of resulting inter­ Commission rules. perform ascertainment. ference, use the maximum amount of power. Sec. 412 enumerates the powers and duties Sec. 435 requires any appEcant for a broad­ This section also sets specific obligations of the Commission, including the assign­ cast station or construction permit, or any upon all other radio stations in order to ment of spectrum in a manner which assures licensee or permittee, found in violation of assist such vessels in distress. each community in the United States the any applicable civil rights or EEO law to Sec. 457 sets forth specific provisions for maximum local full-time broadcasting and notify the Commission of such finding. This stations owned by the Federal Government nonbroadcasting radio service. section also requires that 'the Commission and stations operated by foreign Sec. 413, while allowing certain waivers, determine whether to grant, revoke, or deny governments. requires that the Commission establish a a license or permit pursuant to such notifi­ Sec. 458 authorizes the Commission to ex­ license fee for all users of the electromagnetic cation; that the Commission enter a memo­ empt any user or operator from any of the spectrum. The fee will be based on the cost randum of understanding with appropriate provisions of Part C ·• of processing the license and the scarcity Federal agencies to secure the information value of the spectrum. This section further necessary to make such a determination; ar:d provides that separate fee schedules shall be that the Commission is not otherwise em­ established for each broadcasting service. powered to promulgate rules to ensure that H.R. 13015, COMMUNICATIONS ACT Such fees shall be phased in over a ten its regulat.ees comply with applicable civil year period in increments of 10% per year. rights or EEO laws. AMENDMENTS Moneys received from fees shall be used to Sec. 436 requires the Commission to obtain establish the Telecommunications Fund in from television broadcastim~ station licensees HON. HENRY A. WAXMAN the Treasury to cover the administrative op­ certain financial information in a uniform eration costs of the Commission. The balance manner. OF CALIFORNIA of such fund will support the Public Tele­ Sec. 437 provides the procedure which re­ IN THE HOUSE OF REPRESENTATIVES communications Programming Endowment places the competitive hearing process and Tuesday, August 8, 1978 account, the Rural Telecommunications Loan establishes the procedure for petitions to account, and the Minority Ownership Loan deny televt.sion station licenses. This section e Mr. WAXMAN. Mr. Speaker, in account based on fixed percentages to be set also provides that the Commission may gr~o.nt order to assist my colleagues' under­ by the Congress once moneys are available. the petitioner a right of discovery; that the standing of H.R. 13015, Chairman VAN Sec. 414 requires the Commission to grant Commission shall determine who has the DEERLIN's comprehensive rewrite of the licenses for broadcasting or other radio serv­ burden of proceeding with the introduction ices to applicants therefor. This section also of evidence and the burden of proof; and that Communications Act of 1934, I am requires the Commission to establish a sys­ the Commission shall dispose of such pro­ pleased to insert in the RECORD a section­ tem of random selection to be used when ceedings no later than 90 days after the date by-section analysis of the last three titles there is more than one applicant a frequency, upon which the last pleading is filed. of the bill: Public Telecommunications, which is to be newly assigned or which is Sec. 438 sets forth the circumstances under National Telecommunications Agency, available as a result of revocation or denial. which television broadcast station licensees and Miscellaneous Provisions. August 8, 1978 EXTENSIONS OF REMARKS 25025

SECTION-BY-SECTION ANALYSIS against a common carrier for the recovery of Part D-Miscellaneous provisions damages shall be filed with the Commission TITLE V-ADMINISTRATIVE AND JUDICIAL Sec. 561 provides that a person may not PROCEDURES; PENALTIES not later than 2 years after the cause of be excused from testifying or producing evi­ action arises. Section 534 also contains pro­ dence in obedience to any subpena issued by Part A-Administrative procedures visions relating to actions against common the Commission, on the ground that the Sec. 511 provides that subchapter II of carriers for the recovery of overcharges: testimony or evidence may intend to in­ chapter 5 of Title 5, United States Code, re­ Part C-Penalties and enforcement criminate him. Section 561 also provides that lating to administrative procedure, shall no individual shall be prosecuted or sub­ apply to rules prescribed by the Commission. Sec. 541 provides that any person who will­ fully violates any provision of the Act shall jected to any penalty or forfeiture for any Section 511 also establishes various notice transaction or matter concerning which he is requirements and requires the Commission be fined not more than $10,000, or imnrisoned not more than 1 year, or both. Second or sub­ compelled to testify or produce evidence after to complete a rulemaking not later than 1 having claimed his privilege against self­ year after the provision of notice. sequent offenses are subject to a fine of not more than $10,000, or imprisonment for not incrimination. Sec. 512 establishes various rules and re­ Sec. 562 establishes various rules, require­ quirements relating to adjudications con­ more than 2 years, or both. Fines are also imposed in the case of violations of rules ments, and procedures relating to the man­ ducted by the Commission. Individuals con­ ner in which depositions may be taken in any ducting hearings for the Commission are re­ prescribed by the Commission. Sec. 542 establishes a forfeiture penalty proceeding or investigation pending before quired to file an initial, tentative, or rec­ the Commission. ommended decision with the Commission. against any person who receives or accepts from any common carrier any moneys or Sec. 563 establishes various rules, require­ Parties to the proceeding are permitted to file ments, and procedures applicable to the exceptions to any such decision, and a deci­ other consideration as a rebate or offset against the regular charges for the transmis­ joinder of parties in proceedings before the sion is required to be made with respect to Commission and in proceedings in any dis­ these exceptions by the Commission or by an sion of messages by such common carrier. employee board of the Commission. Section Section 542 also establishes forfeiture penal­ trict court of the United States to enforce ties (not exceeding $2,000 for each violation) provisions of the Act. · 512 contains limitations applicable to persons Sec. 564 provides, subject to certain speci­ making presentations relating to a case be­ applicable to persons who willfully or re­ fore the Commission, any hearing officer, or peatedly fail to comply substantially with the fied exceptions, that information preserved an employee board. Section 512 also estab­ terms and conditions of any license, certifi­ by the Commission as public records shall be cate, or other instrument or authorization received as prima facie evidence in any in­ lishes requirements relating to employee vestigation conducted by the Commission boards of the Commission. issued by the Commission, willfully or re­ Sec. 513 establishes procedures regarding peatedly fail to comply with any provisions and in any judicial proceeding. the filing of applications for review with the of the Act or rule or order under the Act, or Sec. 565 requires common carriers subject commission. The Commission also is author­ commit certain other violations. Section 542 to the Act to designate an agent in the Dis­ ized to undertake a review on its own initia­ provides notice requirements which shall be trict of Columbia. tive. If the Commission grants an application followed by the Commission before the impo­ Sec. 566 provides that nothing in the Act for review, the Commission may affirm, mod­ sition of forfeiture penalties and establishes shall be construed to abridge or alter any ify, or set aside the action involved, or order limitations and requirements regarding the remedy which exists at common law or which a rehearing. category against whom forfeiture penalties has been established in any other Federal Sec. 514 provides that after the commis­ may be imposed by the Commission. law. sion or an employee board takes a final ac­ Sec. 543 establishes various penalties appli­ TITLE VI-PUBLIC TELECOMMUNICATIONS tion in any proceeding, any party in the pro­ cable to violations of the provisions of part Part A-General provisions C of Title II of the Act, relating to conflict ceeding may petition the Commission or the Sec. 611 contains Congressional findings employee board for a rehearing. Section 514 of interest rules and requirements. also permits parties, in certain instances, to Sec. 544 establishes various specified for­ pertaining to public telecommunications. feitures and penalties applicable to viola­ Sec. 612 contains definitions internal to seek judicial review without filing a petition this Title. · for rehearing. Section 514 also contains pro­ tions of the following provisions; (1) Sec­ visions relating to deadlines for filing peti­ tion 312, relating to service, interconnection, Part B-Public telecommunications pro­ tions, and relating to evidentiary matters. and charges; (2) Section 313, relating to gramming endowment Sec. 515 establishes procedures for the schedules of rates; (3) Section 314, relating Sec. 621 authorizes the establishment of service of orders made by the Commission. to hearings on rates and the authority of the the "Public Telecommunications Program­ The Commission is given authority to sus­ Commission to prescribe rates: (4) Section ming Endowment," a private nonprofit cor­ penc or modify its orders, and persons to 335, relating to extension and discontinuance poration which shall provide financial as­ whom an order of the Commission applies in f:::.cilities and service; (5) Section 316 re­ sistance for the development, production, are required to observe and comply with the lating to evaluation of common carrier prop­ and acquisition of public telecommunica­ order. Orders of the Commission are required erty; and (6) Section 318, relating to annual tions programming. to take effect within a reasonable time, reports, general information, and copies of Sec. 622 establishes a 9-member, Presi­ which shall not exceed 30 days after service contracts. dentially-appointed Board of Directors for of the order. Sec. 545 establishes penalties relatLng to the Endowment, and provides that Board Sec. 516 requires the Commission to issue international common carrier violations. meetings must be open to the public. a written report relating to any inquiry or Sec. 546 requires employees of television Sec. 623 contains provisions relating to the investigation conducted by the Commission. broadcasting stations to disclose to their sta­ appointment of officers and employees of the tions the receipt of any payments by the Endowment, including a provision which Part B~ourt actions and judicial review employees in exchange for the broadcast of · limits their salaries to not more than Level I Sec. 531 gives the Commission exclusive any matter over the station. Section 546 also of the Executive Schedule. authority to commence or defend, and super­ establishes the same requirement in the case Sec. 624 specifies the nonprofit nature of vise the litigation of, civil actions under the of persons involved in the production or the Endowment. · Act, unless the Commission authorizes the preparation of any program or program mat­ Sec. 625 sets forth the purposes and func­ Attorney General to do so. Section 531 also ter intended for broadcast by any television tions of the Endowment. The Endowment contains procedures under which the Com­ broadcasting station. The same requirements shall make grants to and contracts with mission may be given an opportunity to rep­ are made applicable to persons who supply public telecommunications entities, program resent itself in cases before the Supreme program or program matter intended for producers, educational institutions, and . Court. If the Commission has reason to be­ broadcast by any television broadcasting sta­ others, for the development, production, and lieve that any person is liable for a criminal tion. Section 546 also provides that any per­ acquisition of noncommercial instructional, penalty under the Act, the Commission is son who violates the provisions of section 546 educational, and cultural programs and serv­ required to certify the facts to the Attorney shall be fined not more than $10,000, or im­ ices. The section also states that the Endow­ General, who shall cause appropriate crimi­ prisoned for not more than 1 year, or both. ment may not own or operate any public nal proceedings to be brought. Sec. 547 restricts unauthorized intercep­ telecommunication entity, system or network, Sec. 532 provides that any proceedirg to tion, use of publication of communications interconnection system, or program produc­ review any order of the Commission under under this Act. tion facility, and also may not produce, ac­ this Act shall be brought in accordance with Sec. 548 establishes penalties against per­ quire, schedule, or distribute programs. the provisions of chapter 158 of Title 28, sons who refuse to testify or supply evidence Sec. 626 sets forth provisions relating to the United States Code. relating to the review of in obedience to any subpena issued by the distribution of programming funds by the orders of Federal agencies. Commission. Endowment. The section provides that 50 per­ Sec. 533 establishes procedures for the en­ Sec. 549 establishes various rules, require­ cent of the available funds shall be dis­ forcement of orders of the Commission which ments, and procedures applicable to the re­ tributed to public broadcast stations as un­ require the payment of moneys by common covery of forfeitures imposed under the Act. restricted grants to meet the direct costs carriers. Sec. 550 provides that the trial of any of­ of program production and acquisition by Sec. 534 provides that any action by a com­ fense under the Act shall be in the district the stations. Remaining funds shall be dis­ mon carrier for the recovery of a lawful in which the offense is committed. Section tributed as matching grants for the develop­ charge shall be brought not later tha.n 2 years 550 also contains various other provisions re· ment, production, and acquisition of pro­ after the cause of action arises. Complaints lating to venue rules. gramming and services. 25026 EXTENSIONS OF REMARKS August 8, 1978 Sec. 627 prohibits Federal interference or Part D-Telecommunications communications facllities, services, and control over public telecommunications or demonstrations systems. the Endowment. Sec. 661 states that the purpose of this part Sec. 709 establishes a program for the pro­ Sec. 628 contains administrative provisions is to support the development of nonbroad­ vision of low-interest loans to minority indi­ relating to the operations of the Endowment. cast telecommunications fa.cllities for the viduals for the purpose of increasing diver­ (The Endowment is not permitted to accept transmission of health, education, and pub­ sity of ownership of television and radio g'ifts, donations, and bequests that may be lic or sodal service information. [This part broadcasting stations. offered for the purpose of supporting a par­ incorporates the provision of existing law.] Sec. 710 requires the Director to make ticular program or series of programs.) sec. 662 contains definitions of the terms annual reports to the President and to the Congress regarding the activities of the Sec. 629 authorizes $200,000,000 for each used in this part. Sec. 663 authorizes the Secretary of Health, Agency. of the fiscal years 1980 through 1983, to be Sec. 711 provides for the transfer of au­ placed in the Public Telecommunications Education, and Welfare to carry out a tele­ Programming Endowment Account with the communications demonstration grant pro­ thority, functions and other matters to the gram, and sets forth the terms and condi­ agency. funds made available under Section 413, and Sec. 712 authorizes for each of the fiscal to be used by the Endowment to carry out tions for such graruts. Sec. 664 contains !lldministrative provisions years 1980, 1981, 1982 and 1983, $17,500,000 the provisions of this part. Appropriations to carry out the provisions of the Title, ex­ are to be made two years in advance. relating to the records and accounts of re­ cipients of funds under this part. cept for the provisions of sections 708 and Part C-Grants for public telecommunica­ Sec. 665 authorizes the Secretary to adopt 709. Of such amounts, $2,500,000 is to be tions operations, facilities, and expansion such rules and regulations as may be neces­ made available in each such fiscal year for Sec. 641 sets forth the purposes of this part. sary to ca.rry out this part. the purposes of carrying out the studies Sec. 642 establishes in the National Tele- Sec. 666 authorizes the Secretary to coordi­ provided under section 707. communications Agency a program of dis­ nate his activities under this part with those TITLE VIII-MISCELLANEOUS PROVISIONS cretionary grants to public broadcast stations of the Commission, the Endowment, and the Sec. 801 contains provisions relating to to meet the costs of operating and maintain­ National Telecommunications Agency. the transfer of personnel, property, records, ing the fac111ties of the stations, 75 percent Sec. 667 a.uthorizes $5,000,000 for fiscal year and unexpended balances of appropriations of the funds to go to television licencees and 1980 to be used by the Secretary to carry out from the Federal Communications Commis­ 25 percent to radio licensees. Funds distrib­ the provisions of this part. sion to the Communications Regulatory uted under this section may not exceed 50 TITLE VII-NATIONAL TELECOMMUNICATIONS Commission which is established in the Act. percent of a station's total operating budget, AGENCY Sec. 802 provides that transfers made un­ and may not be used to meet direct program Sec. 701 states the findings of this Title, der section 801 shall not affect proceedings costs. Stations receiving funds under this including the establishment of a national pending before the Federal Communications section must furnish a noncommercial serv­ telecommunications policy. The National Commission on the date of the enactment of ice, and may accept no donations or contri­ Telecommunications Agency (established in the Act. Section 802 also contains various butions offered for the purpose of supporting § 703) shall have the primary respOIIlSibility other provisions relating to the effect of particular programs or series. In addition, for developing and implementing a national transfers under section 801. the stations are required to establish com­ telecommunications policy; serve as the prin­ Sec. 803 provides that the Federal Com­ munity advisory boards, to hold open meet­ cipal advisor to the President in matters c~m­ munications Commission and the Corpora­ ings, to comply with equal employment op­ cerning telecommunications issues and act tion for Public Broadcasting shall terminate portunity practices set forth in Section 646, as the arbiter of disputes which arise in con­ on the date of the enactment of the Act. and to employ the uniform accounting prin­ nection with such issues; and, develop the Sec. 804 repeals the Communications Act ciples established under Section 645. information necessary to develop and imple­ of 1934, the Communications Satellite Act Sec. 643 established a program of matching ment such a policy. of 1962, and the Cable Landing Licensing grants designed to expand the avallabllity of Sec. 702 defines terms internal to this Title. Act. public telecommunications programs and Sec. 703 creates the National Telecommuni­ Sec. 805 contains various conforming and services. oatitms Agency in the Executive Branch of technical amendments made necessary by Sec. 644 authorizes the Director of the Na­ the Federal government. other provisions of the Act. tional Telecommunications Agency to pro­ Sec. 704 sets forth the functions of the Sec. 806 provides that, with certain speci­ vide funds for the construction or lease of Agency, including exercising principal re­ fied exceptions, the Act shall take effect on interconnection facillties. Any organization sponsib111ty for allocation of the electromag­ the date of its enactment.e or institution respon,.ible for operating or netic frequency spectrum and studying and managing such interconnection system is providing for more efficient uses of the spec­ prohibited from producing or acquiring pro­ trum in accordance with section 707(a); pre­ grams, acting as the authorized representa­ paring and managing United States ·partici­ CONGRESSIONAL WIVES REPORT tive of any public telecommunications entity, patibn in international telecommunications ON NUTRITION or scheduling progTams for distribution to conferences, in consultation with the Secre­ the public at specific times. This section also tary of State or his delegate; developing provides that excess capacity on such inter­ plans, policies, and programs for telecommu­ HON. STEPHEN L. NEAL connection systems must be made available, nications facilities, services and systems for OF NORTH CAROLINA under reasonable terms and conditions, to Government agencies; providing assistance to other persons for the transmission of non­ the Office of Management and Budget with IN THE HOUSE OF REPRESENTATIVES commercial programming and related mate­ respect fu the coordination of activities of Tuesday, August 8, 1978 rial to the public telecommunications en­ Government agencies which relate to tele­ tities. communications; establishing policy guide­ • Mr. NEAL. Mr. Speaker, as individual Sec. 645 contains administrative provisions lines for, and overseeing, the procurement by Members of Congress we are very much relating to accounting and record-keeping by the General Services Administration of tele­ aware of the tremendous contributions recipients of funds under this part, recovery communicatiOOl.S facllities, services and sys­ which are made by our families, andes­ of funds if facilities cease to be used for tems for use by Government agencies; study­ pecially by our spouses. I wonder, noncommercial purposes, and annual reports ing the impact of telecommunicatibns tech­ nology on the right to privacy, and making though, if many of us know of their col­ by the Director of the National Telecommu­ lective efforts and the splendid work nications Age~cy. recommendations to the President, and to the Sec. 646 states thlllt equal opportunity in Congress based upon the results of such produced thereby. employment shall be afforded to all persons study; conducting, supporting, and cObrdi­ For instance, for a period of 8 months by all public telecommunications entities re­ nating research in connection with the for­ ending in about June of this year, the ceiving funds under this part, and provides mulation of national telecommunications congressional wives task force conducted for enforcement. policy, providing research support to Govern­ a comprehensive study of nutrition. At Sec. 647 prohibits Federal interference or ment agencies and fu State and local govern­ the end of its studies, this bipartisan control over public telecommunications. ments, and establishing and maintaining a clearinghouse of information with respect to group issued a report on nutrition, the Sec. 648 authorizes $75,000,000 for each of telecommunications research and develop­ purpose of which is to increase public the fiscal years 1980 through 19·83, to be m:ed ment projects carried out or sponsored by the knowledge of the relationship between by the Director of the National Telecommu­ Federal Government. dietary habits and certain physical and nications Agency to carry out the program Sec. 705 provides for a Director and Deputy mental illnesses. of grants to public broadcast stations estab­ Director of the Agency. lished under section 642. This section also Sec. 706 sets forth the functions and duties I have read the report and am very authorizes $25,000,000 for each of the fiscal of the Director. much impressed by its thoroughness, its years 1980 through 1983 for the purpose of Sec. 707 requires the Agency to conduct incisiveness, and its conclusions. Without carrying out the other grant programs estab­ studies relating to spectrum allocation. borrowing further from it, I would like lished by this part. Appropriations are to be Sec. 708 establishes a program for the pro­ to make it available to my colleagues and made for two years in !lldva.nce. vision of low-interest loans for rural tele- commend it to their consideration. August 8, 1978 EXTENSIONS OF REMARKS 25027

A REPORT ON NUTRITION scientific base. The Senate Select Commit­ tary value. Dr. Jean Mayer, a noted nutrition­ (By the Congressional Wives Task Force, tee on Nutrition and Human Needs is to be ist and currently President of Tufts Uni­ June 1978) commended for its recent study on "Dietary versity, has stated on many occasions that, The debate over nutrition in America to­ Goals for the United States." While there is unfortunately, the emphasis in food adver­ day is becoming increasingly widespread. controversy associated with the report and tising is generally in reverse order to the Over the past ten years, our emphasis has some of its recommendations, it has effec­ dietary usefulness of the product. changed from concern about malnourish­ tively served as a catalyst for debate on what Northwestern University Medical School ment of our population due to actual food Americans should or should not eat. This found in a recent television food advertising shortages, to concern about ill health due report is, to date, the first "definitive stand" study that about two-fifths of advertising to overeating and poor dietary habits. Obe­ by the federal government on dietary goals.s time was devoted to non-nutritious bever­ sity is now our number one nutritional prob­ Once national nutrition needs are estab­ ages alone. Advertisements for low-nutrient, lem. lished, nutrition information can be made highly sugared food items accounted for ap­ As participants in the bipartisan Congres­ available to consumers in a simplified, co­ proximately 11 percent of air time. Added sional Wives Task Force, and as wives of ordinated manner. At present, "Nutrition ed­ together, these advertisements commanded Members of the United States Congress, we ucation is a first-class mess" 1 in this coun­ over 50 percent of food advertising time. are concerned about the quality of life for try. In 1976 approximately 70 million dollars When advertisements for snack foods, baked all Americans, and it is our wish to add our were spent by 14 of 30 different nutrition goods, relishes and foods high in oil and fat collective voice to that of others interested in offices or agencies of the federal government. content are included, then high-calorie, low­ increased public awareness of better nutri­ The total amount of funds expended for the nutrient foods captured "fully ·70 percent of tion. remaining 16 prograins is unknown.8 Since the ad time." 1u Based on an eight-month study of current there has been no obvious central focus or Children are a particular target of food nutrition issues, with testimony from ex­ goal for these programs, these funds were advertising. By the time the average child perts in government, industry, medicine, nu­ mostly wasted because the materials never has graduated from high school, it is esti­ trition and consumer organizations, the Con­ reached their intended audience. According m~ted that he or she has spent 18,000 hours gressional Wives Task Force has found that to Carol Foreman, Assistant Secretary of Ag­ before the television set and only 11,000 greater public knowledge of the relationship riculture, "currently conceived nutrition ed­ hours in the classroom. Approximately one­ between dietary habits and certain physical ucation prograins are largely ineffective and third of a million commercials are viewed and mental illness will lead to improved a waste of money." o during this period, and over 50 percent of health. This knowledge, moreover, will lead Additionally, the Departments of Agricul­ the commercials aimed at young children are ture and of Health, Education, and Welfare for food items.16 Because children are so heav­ to lower death rates from diet-related dis­ are apparently engaged in a tug-of-war over eases and tQ lower medical bills. Special at­ ily targeted and because dietary habits are control of government nutrition programs, forme~ at an early age, children especially tention was given to the excessive amounts each issuing differing guidelines and direc­ of fat, salt, sugar and certain other additives need guidance in making food selections and tions. There is now a critical need for cooper­ spending decisions. that are consumed dally by our population. ation and mutual purpose between the agen­ The typical American diet now enJoyed by At the urging of Action for Children's Tele­ cies or government and between government vision and the Center for Science in the Pub­ most of our citizens apparently contributes and private industry. Speaking of a "con­ to some of our most prevalent health prob­ lic Interest, the Federal Trade Commission fused marketplace," George Koch, President has proposed a study of television food ad­ leins. According to a number of experts, of the Grocery Manufacturers of America, inadequate nutrition is thought to be a fac­ vertising aimed at children. Of particular in­ has said that "Government must make up its terest is the advertising of highly sugared tor in heart disease, the number one killer mind." 1o in the United States; certain forms of can­ foods which pose serious dental health risks. To achieve improved, effective nutrition This inquiry is an important step toward as­ cer; diabetes; obesity; cirrhosis of the liver; education for our population, there must be arteriosclerosis; and dental caries, which suring tht children receive adequate protec­ cooperation and coordination among the rel­ tion in the television age, a responsibility "affect 98 percent of the population." 1 evant agencies of the federal government at that must be shared by the advertiser, broad­ It is estimated that there are 650,000 all levels, the medical community, the food deaths a year due to heart disease, and that caster and parent. industry, consumer groups, and the media. At the present time, the federal govern­ a 25 percent reduction in premature mor­ Under a national policy, nutrition educa­ tality would occur if diet were improved. ment is among "the top 10 purchasers of tion-giving the "why" as well as the "how" radio and television . advertising." Unfor­ Estimates of some other benefits from im­ of good dietary patterns-should be made an proved nutrition are as follows: Cases of tunately, the Departments of Agriculture integral part of elementary and secondary and of Health, Educat.on, and Welfare spend obesity would drop by 80 percent. For dia­ school curricula. Federal breakfast and lunch betes, 50 percent of the cases would be no funds to purchase time for television ad­ programs should be closely coordinated with vertisements of nutrition information, rely­ avoided. And for cancer, there would be 20 the established dietary guidelines. Educa­ percent fewer incidences.2 ing instead on free public service announce­ tional materials that are both attractive and ments aired by individual broadcastersP About three billion dollars a year are spent informative should be made available in for dental care, in large part due to the classrooins, library areas, and school cafe­ Since federal agencies do buy time for other overconsumption of highly-sugared prod­ terias. messages, a percentage of advertising funds ucts.3 According to Dr. Michael Jacobsen, It is also imperative that medical schools should be budgeted for nutrition informa­ Co-Director of the Center for Science in the in this country place a greater emphasis on tion. Public Interest, Americans consume a "total nutrition as preventive medicine. In a sur­ Some change should be forthcoming in of 27 billion pounds of sugar and other re­ vey done in July, 1976, the American Medi­ the airing of public service announcements. fined sweeteners annually, or about 125 cal Association's Department of Foods and These announcements serve a vital function pounds per capita. This mountain of sugar is Nutrition determined that only 23 percent in every community. Critics now contend a major contributor to tooth decay, a fact of our medical schools had mandatory nutri­ that such messages are aired at the whim proven by many scientific studies and agreed tion courses.11 By 1980, medical bills are pro­ of those who control the station, often at upon by the entire dental profession." ' jected at over 230 billion dollars, with the hours when few people can see or hear them. There is now a distinct need for a national cost in human suffering at an incalculable The 1969 White House Conference on Food, nutrition policy. This policy must clearly level. If six out of every ten deaths in this Nutrition and Health suggested "that 10 state our nutrition goals and objectives, wltn country are nutritionally related, then the percent of broadcast time be set aside over well-coordinated nutrition programs at all medical community must change its empha­ various time periods for all public- service levels of our society. Esther Peterson, Special sis from a "curative" framework to a "pre­ communications." 1s This suggestion, now Assistant to the President for Consumer Af­ ventive" one. almost ten years old, should again be con­ fairs, has stated that "We need to educate As stated in the report of the Senate Nutri­ sidered. Moreover, the Federal Communica­ not only consumers but also the regulators tion Select Committee, "Food production and tions Commission should develop standards and industry representatives as well. I want processing is America's number one industry to govern public service announcements and a nation of consumers free to make their own and medical care ranks number three. Nutri­ to provide better time allocation. choices in the marketplace. But, I want con­ tion is the common bond between the two .. More effective product labeling should be sumers to have all of the information and Nutrition is a spectrum which runs from required as one means of disseminating in­ knowledge necessary to make intelligent, in­ food production at one end to health at the formation to consumers. Nutrition labeling formed choices. That, briefly, is our mandate.5 other." 12 is, for the most part, voluntary; and cur­ The first task, although not an easy one. Current advertising budgets for the na­ rent labels rarely contain information on tion's food companies total 5 billion dollars calories, salt content, types of fat, or total is for food and health experts to formulate 13 dietary guidelines to serve as the basis for per year, with only a small fraction being amounts of sugar. Additives and preserva­ spent for educational purposes. In 1976, 275 tives are listed on some labels, and not on a national policy. To this end we recom­ million dollars were spent by one company others. Dr. Allen Forbes, Associate Director mend the coordination of existing human for advertisement of its products, and only of Nutrition and Consumer Services for the nutrition research and the encouragement one percent of that total was allotted for Food and Drug Administration, said that the and funding of the additional research neces­ nutrition education.H High-powered advertis­ "food label is an ad hoc collection of sary to establish guidelines on a sound ing campaigns directed at both children and things." 10 The present situation "is one in I adults often encourage consumers to eat and which the consumer is under in tense pres­ Footnotes at end of article. drink food items that have little or no die- sure to buy certain foods but at the same 25028 EXTENSIONS OF REMARKS August 8, 1978 time is ignorant of some of their most im­ Richard Lyng, President, American Meat "NEXT YEAR IN JERUSALEM"-A portant nutritional characteristics." 20 Institute. HERO'S PRAYER Labels should be simple and clear, and not George Franklin, Peggy Waterman and deceptive. For example, if a product contains Rosalyn Franta, representatives of the Kel­ processed sugar plus other sweeteners, then logg Company. HON. ROBERT K. DORNAN the total amount or percent of sugars should George Koch, President, Grocery Manufac­ OF CALIFORNIA turers of America, Inc.; Dr. Mahon A. Bur­ be given, rather than a separate listing for IN THE HOUSE OF REPRESENTATIVES each type of sugar. Also, millions of Ameri­ nett, Director, Scientific Affairs for GMA; cans have a low tolerance for salt, and must James C. May. Vice President, Public Affairs Tuesday, August 8, 1978 forGMA. watch their intake very carefully. Improved e Mr. DORNAN. Mr. Speaker, St. labeling of sodium content that is easy to Robert B. Choate, President, Council on find and understand would be greatly bene­ Children, Media, and Merchandising. Thomas Aquinas once referred to the ficial to the approximately 25 million per­ Dr. Charles French, Study Director, the virtue of courage, or fortitude, as a sons in the United States known to be suf­ President's Reorganization Project on Food fundamental or cardinal virtue. In his fering from hypertension. and Nutrition. monumental work on philosophy and Dr. Allen Forbes, Associate Director, Nu­ theology, the "Summa Theologiae," he Congress can mandate an educational im­ trition and Consumer Services, Food and perative. The political will to provide this Drug Administration. observes that courage is "an aid to every thrust, however, will not exist until our Tracy Westen and Thomas Donegan, Dep­ other virtue as a bulwark of steadfast­ elected representatives hear our voices. The uty Directors, Bureau of Consumer Protec­ ness, and helps other virtues attain their Chairman of the House Agriculture commit­ tion, Federal Trade Commission. ends despite what blocks or deters them.'' tee's Subcommittee on Domestic Marketing, It Consumer Relations, and Nutrition, Rep. Dr. Joseph Crapa, Staff Director, House may be properly said, therefore, that Fred Richmond, has summed it up well: "To Agriculture Subcommittee on Domestic the absence of courage will nullify a Marketing, Consumer Relations, and Nutri­ man's other good qualities. No test of the degree that the public convinces policy­ tion. makers that food, diet, and health have a these qualities, such as dedication to vital relationship, a food and nutrition policy Christopher Hitt, staff member of the Sen­ ate Agriculture, Nutrition, and Forestry truth or mental and moral freedom, will will be pursued." 21 Committee; former staff consultant to the succeed if a man is spiritually or morally Responsibility for the development of a Senate Select Committee on Nutrition and weak. The totalitarian state preys on national nutrition policy belongs to us all. Human Needs. such weakness. That, in essence, is what We must let our views be known, beginning Alexandr Solzhenitsyn was trying to at the community level, and work together FOOTNOTES 1 U.S. General Accounting Office, Report to tell us in his recent Harvard speech. for constructive action. In saying this, Solzhenitsyn revealed To that end, the Congressi~nal Wives Task the Congress of the United States (Washing­ Force makes the following recommendations: ton, D.C., March 22, 1978), p. 1. the achilles' heel of the totalitarian 2 1. That consumers begin now to inform U.S. General Accounting Office, National state. The totalitarian state is totalitar­ their elected representatives of their con­ Nutrition Issues (Washington, D.C., DeceM­ ian because it seeks total, or absolute, ber 8, 1977), p. 4. control of each and every man. This is cern over dietary problems in this country, 3 and of their desire for a coherent national Dr. Michael Jacobsen, "Har•lesting the a formidable task, but that kind of con­ nutrition policy. Fruits of Nutrition Research," Nutrition Ac­ tion, September, 1977, p. 3. trol is its proper object. Otherwise, the 2. That guidelines for this nutrition policy 'Ibid. state cannot be properly defined as be established by food and health experts 5 Hearings before the Subcommittee on totalitarian. under the auspices of the federal govern­ Domestic Marketin~. Consumer Relations, The totalitarian state not only seeks ment, and that the research necessary to es­ and Nutrition of the House Committee on control of a man's physical existence, tablish these guidelines on a sound scientific Agriculture on H.R. 11761, the National Con­ base be encouraged and funded. but also his mind and soul. And in this, sumer Nutrition Information Act of 1978, as I said, we may detect the Achille's 3. That there be coordination and mutual testimony by Esther Peterson, 95th Cong., purpose among federally supported nutrition 2nd Sess., April 12, 1978. heel of totalitarianism. For the soul is education and feeding programs, and that 6 General Accounting Office, National Nu­ the province of God, and not the prop­ current priorities m spending be reordered trition Issues, p. 16. erty of Caesar. The spiritually strong to reflect the new nutrition goals. 7 Dr. Allen Forbes, statement before the man can bid defiance to the totalitarian 4. That nutrition education be a primary Congressional Wives Task Force, March, 1978. claim on his life, and the mind-control­ target in elementary and secondary school 8 General Accounting Office, Report to the lers in the Kremlin and elsewhere are systems, and that nutrition courses be man­ helpless in the face of such defiance. datory in medical school curricula. Congress, pp. i-ii. 9 They can imprison, threaten, and kill, 5. That there be mandatory labeling, in "Notes from the School Lunchroom," Nu­ simple and clear language, of all processed trition Action, Septemoer, 1977, p. 2. but they cannot rob a man of his soul, foods and beverages sold in retail outlets, 10 George Koch, statement before The Con­ or a special virtue of the soul, courage. with the labels containing relevant informa­ gressional Wives Task Force, April, 1978. I was deeply moved by the speech in tion on fat, salt and sugar content, additive 11 General Accounting Office, National Nu­ the "dock" of Soviet dissident Anatoly and preservative content, and caloric value. trition Issues, p. 31. Shcharansky. His utterance was reminis­ 6. That the media, especially television, be 12 United States Senate Select Committee cent of the incredible courage of Sol­ more effectively used as an education tool. on Nutrition and H11man Needs, "Dietary zhenitsyn, the steadfastness of the late Specificall~. that the food industry assure Goals for the United States." second edition, Cardinal Mindzenty, and the bravery of that food advertising is fair, honest, and re­ 95th Cong., 1st Sess., p. XXII (1977). the recently imprisoned Lithuanian dis­ liable; that the Federal Communications 13 Hearings before the House Subcommittee senter Viktoras Petkus. The character of Commission develop standards to govern on Domestic Marketing, Consumer Relations, his speech bears out, once again, yet an­ public service announcements and better and Nutrition. testimony by Esther Peter­ time allocation for such messages; and that son, April 12, 1978. other observation of St. Thomas Aquinas the relevant federal departments budget a 14 on the practice of fortitude: "The man percentage of their advertising funds for nu­ J~ck Anderson, "Teaching the Young," of fortitude has delight of soul in his trition information. Washmgton Post, January 31, 1978. strong endurance for good." 15 Hearings before the House Subcommit­ 7. That government, the medical commu­ tee on Domestic Marketing. Consumer Rela­ Mr. Speaker, Anatoly Shcharansky, in nity, the food industry, consumer groups, tions, and Nutrition. testimony by Esther spite of his sufferings, claims that he is and the media cooperate in the dissemina­ Peterson, April 12, 1978. happy. I believe him. It is an honor to tion of nutrition information, so that con­ 18 Robert B. Choate, statement before the submit his speech to the Soviet Court sumers will be able to make informed food Congressional Wives Task Force, March, into the RECORD: selections. 1978. (From The New York Times, July 15, 1978) THE FOLLOWING PERSONS ADDRESSED THE 17 General Accounting Office, Report to the "NEXT YEAR IN JERUSALEM" CONGRESSIONAL WIVES TASK FORCE Congress, p. 23. In March and April, during interrogation, Carol Foreman, Assistant Secretary of 18 Ibid., p. 24. Agriculture. the chief investigators warned me that in the 10 Dr. Allen Forbes, March, 1978. position I have taken during investigation, Linda Billings, Washington Representative 20 "Dietary Goals for the United States,'' and held to here in court, I would be threat­ for the Sierra Club. p. 64. ened with execution by firing squad. or at Dr. Michael Jacobsen, Co-Director of the 21 "The Role of the Federal Government in least 15 years. If I would agree to cooperate Center for Science in the Public Interest; Nutrition Education," Nutrition Education, with the investigation for the purpose of de­ author of Eater's Digest. October-December, 1977, p. 151.e stroying the Jewish emigration movement, August 8, 1978 EXTENSIONS OF REMARKS 25029 they promised me early freedom and a quick are not invincible but have been left at does not lie there. Really serious is that reunion with my wife. large. Pelplng, while keeping that many people in Five years ago, I submitted my application The first mistake is the failure to chains, occupies a vast strategic area of the for exit to Israel. Now I'm further than ever strengthen the battlefront of freedom Asian Continent and has been active as a from my dream. It would seem to b~ cause against autocracy so as to effectively deal major source of world turmoil. for regret. But it is absolutely otherwise. I with world communization strategies. In­ Solution of the China issue does not hinge am happy. I am happy that I lived ho::-.estly, stead, attempts to bring about a power on how to pacify Peiplng and coexist with it. in peace with my conscience. I never compro­ equ111brlum through multipolar check a.nd To the contrary, the key is successful freeing mised my soul, even under the threat of balance and through detente have dispersed of that number of captive people so that their death. the free world's own strength, leaving gaps enormous combined strength can be chan­ I am happy that I helped people. I am for multifront Red expansion. neled into the free camp building of world proud that I knew and worked with such The second mistake is the failure to apply peace and security. This is the best and only honest, brave and courageous people as Sa­ sufficient m111tary and economic strength to correct formula if a way is to be named for kharov, Orlov, Ginzburg, who are carrying on the maintenance of freedom and security ln the solution of China issue. Any attempt to the traditions of the Russian 1ntell1gentsla. I the face of Communist growth. Instead, vain make the Chinese Communists go to the a.m fortunate to have been witness to the attempts have been made at the conference conference table and accept a condition oth­ process of the liberation of Jews of the table. Concessions made to Red tyrants have er than this is a dangerous mistake. U.S.S.R. not brought lasting peace, for the Commu­ To "normalize relations" with Peiping or I hope that the absurd accusation egalnst nists never take part in peaceful coexistence. sign "peace treaties" with it amounts to an me and the entire Jewish emigration move­ The third mistake is the failure to unlte acknowledgement that the Chinese Com­ ment will not hinder the liberation of my freedom forces for the dealing of blows at munists can continue enslavement of the people. My near ones and friends know how those Communists vying for hegemony. 800 m1111on people and to a pat on the shoul­ I wanted to exchange activity in the emigra­ Planners of unity with Pelplng for the check­ der for the regime to intensify its suppres­ tion movement for a life with my wife, ing of Moscow are not mindful of the com­ sion of resistance. This goes diametrically Avltal, in Israel. mon characteristics of the two Red regimes against the spirit and demand of the human For more than 2,000 years the Jewish and their unchangeable identical go.als or rights campaign. people, my people, have been dispersed But world communization and human ensla\'e­ Even though Pelplng is now treating the wherever they are, wherever Jews are found, ment. United States as its secondary enemy because every year they have repeated, "Next year in The fourth mistake is the failure to re­ of its need to compete and cope with Rus­ Jerusalem." Now, when I am further than member the bitter lessons of free peoples vic­ sia, its "anti-U.S. imperialist•• policy will not ever from my people, from Avltal, facing timized by deceitful Communists. The Red change. The regime wm continue as Amer­ many arduous years of imprisonment, I say, bloc is bent on burying free nations, but free ica's unmistakable enemy as long as it exists. turning to my people, my Avital: Next year world appeasers have been seeking common Growth can make Peiping America's most ag­ in Jerusalem. interests as grounds for rapport. This has en­ gressive enemy and the clash of interests Now I turn to you, the court, who were abled the Communists to trick free nations wm then be absolute. Those who think that into supplying them with food stuff and so­ Peiping shares common intereRts with the required to confirm a predetermined sen­ phisticated fac111ties, all for the enhance­ tence: to you I have nothing t~ say.e U.S. will, if they are permitted to have their ment of strength for suppression and belllg­ way, expose Americans to growlngly serious erence. threat and bring unavoidable damage to END SLAVERY AND WIN FREEDOM 2. THE DANGER OF ATTEMPTS TO PIT PEIPING Asian and world peace and security. AGAINST MOSCOW Only when China is unified and rebuilt Contradiction does exist between Peiplng in freedom and democracy can all of Asia HON. DEL CLAWSON and Moscow but revolves only around their be free and democratic. Furthermore, remov­ al of the Bamboo Curtain can soon be fol­ OF CALIFORNIA race for hegemony and human enslavement. The dispute does not change the fundamen­ lowed by the lifting of the Iron Curtain else­ IN THE HOUSE OF REPRESENTATIVES tal confrontation of Communists and demo­ where in Asia as well as in Europe and Cuba. Tuesday, August 8, 1978 cratic forces. Attempts to use Pelplng against Only when all of China is free and demo­ Moscow are serious mistakes, for the blurring cratic can the long-range interests of all e Mr. DEL CLAWSON. Mr. Speaker, it of line between friend and foe amounts to free nations be assured. · was my privilege to be the guest of the self-demolition of the democratic camp. Pelplng's rule of slavery wlll be recorded people of Taiwan during Captive Native Backward, poor and confused, Pelping in history as a brief transitional phenom­ Nations Week. Accordingly, I am doesn't have the strength to check Moscow. enon. China's outstanding traditional cul­ Furthermore, all1ance with the regime, tn­ ture is the greatest source of strength pleased to insert at this point in the against Communism. Pelplng w111 inevitably CONGRESSIONAL RECORD the address by stead of halting Moscow's expansionist move, rubs the Russians the wrong way, turns them fall apart as the Chinese struggle on for Dr. Ku Cheng-kang which was given at ruder towards the U.s .• and makes them has­ freedom and human rights. the rally in Taipei, Friday, July 21. The ten external steps. Mounting of tension 4. STEPS WE ADVOCATE address follows: throughout the world necessarily follows Through struggle against Communist MANIFEST SUBLIME MORAL COURAGE TO END such steps. forces, man's determination to win freedom, SLAVERY AND WIN FREEDOM! To inject strength into Pelping for the exercise human rights, seek progress and (Address by Dr. Ku Cheng-kang) sake of harnessing Moscow is to repeat the achieve happiness has been sharpened and Distinguished Guests, Ladles and Gentle­ post-World War II mistake of helping Rus­ forged as the main current of this age. Strug­ men: sian growth. Cultivation of aggressive Com­ gles behind the Iron Curtain for freedom munist forces is to put so much more hostile a~d human rights are growing and spread­ Freedom is no less dear, if not dearer, power at the free world's own doorstep. than life itself. It is the quality of inalien­ ing. The world situation is thus increasingly able dignity of man's life. Enunciations We must point out that Peiping is trying in favor of the free democratic camp. At this such as "Give us liberty or give us death!" to pull the U.S. to its side just so that Amer­ turning point of history, we strongly advo­ have reverberated through history. Com­ ican strength can be employed against Rus­ cate the following steps: munist expansion leaves us no choice but sian threat. This pitting of a secondary en­ We urge that at this stage of anti-Com­ to rise for the defense of freedom anC1 ellm­ emy against the primary one is part of the munist struggle, we all stand firmly on the lnation of Red tyranny. We the representa­ regime's standing tactics of combining unity battlefront of freedom, no longer allowing tives of the Republic of China's various cir­ with struggle. The Americans in the mean­ communization of any single piece of free cles and our distinguished guests from time are referred to as "U.S. imperialists;· to land or enslavement of any free man. All the throughout the world have gathered here be dealt with sooner or later. Peiping is ea­ free nations and peoples of the world should today for a captive Nations Week Rally be­ gerly playing "the American card" in an at­ heighten vigilance, unite vigorously, and cause we have to bring together freedom tempt to prosecute its grand scheme-provo­ strive on as one to enhance freedom, at the forces, promote human rights and set free cation of major U.S.-U.S.S.R. host111tles so as same time helping the captive peoples fight the captive masses of people. to bury both the "Russian revisionists" and for a final victory of freedom and human "American imperialists" in nuclear ashes, 1. BASIC MISTAKES OF FREE NATIONS IN thus k1111ng two birds without even using a rights. FACING COMMUNISTS stone. We urge that the United States stand ·at the head of a strong freedom formation, pool The world situation remains complicated 3. HOW THE CHINA ISSUE SHOULD BE VIEWED and volatile but st111 is fundamentally a more freedom forces through thorough exhi­ continuation of confrontation and struggle The China issue is a focus of world atten­ bition of moral courage, strengthen these between freedom and democracy on the one tion and has conspicuously gained impor­ forces through full cooperation with friends hand and slavery and totalitarianism on the tance because of Washington's move towards and allles, and spur such forces to action other as reflected in thoughts, systems and "normalization of relations" with the through manifestation of America's own ways of life. Red scourage goes on, all be­ Chinese Communists. strength for freedom. To do this, America cause free nations have been committing The Chinese Communists do not truly must stop moving towards "normalization of one grave basic mistake or another vis-a-vis command the 800 m1llion people on the relations" with the Chinese Communists and Communism and slavery. Communist forces mainland, and the graveness of China issue abandon the dangerous plan to ally with Pel- CXXIV--1574-Pa.rt 18 25030 EXTENSIONS OF REMARKS August 8, 1978 ping for the checking of Moscow. As the U.S. rect defense of our country-its terri­ example, believe the United States is strives to contain Russian expansion, she tory, population, and institutions. moving in the proper direction. must work to end Chinese Communist ram­ Ravenal's analysis raises the interest­ Likewise, the questionnaire respond­ pancy. We urge that the Republic of China, the ing question of what European and Asian ents have serious doubts about congres­ Republic of Korea and Japan unite together powers contribute to their own defense. sional or Presidential ability to do a good and, in conjunction with Southeast Asia's The comparative defense figures are job. Perhaps to regain the people's con­ free nations, establish a strong island chain rather startling. In the period, 1972-77 fidence and solve pressing problems we of defense to protect freedom and security rt by January, 1979 on optional new rate structures consistent with forming these laws would be a major risky ventures stand more of a chance desirable fiscal policy under existing eco­ step in the right direction, assuring the of resulting in a loss, and the Full In­ nomic conditions, with special attention to Federal Government would cease con­ dexation Act offers more of an advan­ the possib111ty of eliminating all bracket fiscatin6 upwards of all the real-infla­ tage. rates in excess o! 50 percent. Eliminating the tion adjusted-earnings of an invest­ I invite my colleagues to join me in higher rates is probably possible since rough­ ment. The Ways and Means bill, which I endorsing a fair alternative to the capi­ ly 80 percent of preference income, which is tal gains provisions we will be voting on responsible for subjecting any personal serv­ will vote against, does not offer true ice income to rates above 50 percent, is com­ capital gains reform. shortly, an alternative that breaks with posed of capital gains under present law. But My Capital Gains Full Indexation Act the pattern of political compromise that the amendment will eliminate capital gains of 1978 offers just such real, and over­ has made the tax code such a disgrace. as a. preference item. due, reform. The Capital Gains Full Indexation Act, The Secretary o! the Treasury shall promul­ It would scrap the existing interwoven instead, asks the simple question: What gate regulations by January, 1979 to adjust confusing and unsound provisions of should be done?-and gives a complete, real gains and losses for the effects of in­ capital gains law: the 50 percent deduc­ uncomplicated and fair answer. flation upon debt financed capital. This is tion, the alternative tax, and the rela­ Mr. Speaker, I include a summary and necessary since capital assets paid !or with analysis of the Full Indexation Act at debt are paid off gradually with progressively tion of capital gains preference income less valuable dollars, while interests deduc­ to the minimum tax and the maximum this point in the RECORD: tions on the debt o.re not reduced by the rate tax. Who believes that these provisions, THE CAPITAL GAINS FULL INDEXATION ACT of inflation. Thus the recorded basis may not which have evolved through years of po­ GENERAL EXPLANATION accurately reflect the amount paid for the litical compromise, form the basis for In brief &sset. Congress shall have all of 1979 to re­ fair and rational taxation? No wonder This is a. proposal to tax only those capi­ view the regulations before they are im­ the people are upset and demand action, tal gains that exceed the effects of inflation plemented for 1979 returns filed in 1980. even if their cries are drowned out by the on the purchasing power of the value of the 6. Effective date-tax years beginning after special interests, which perceive the pos­ asset, and to permit deductions of losses to December 31, 1978. sibility of still more congressional punc­ the extent the purchasing power of the value Advantages tures in the Federal Treasury. of the asset has not kept pace with general 1. Achieves horizontal equity as closely as price increases. Real gains would be taxed is reasonably possible. In place of present treatment, the Full at ordinary rates, rather than half of ordi­ Indexation Act would do two things: 2. Encourages risk capital formation­ nary rates as under present law. The change The taxpayer is assured of keeping part of First. Remove the effects of inflation applies only to individuals. any real ca-pital gain since only the real gain from a capital gain or loss to determine Recommendations, or suggestions to con­ is subject to the tax. Presently, some prospec­ the real gain or loss ; and sider such an approach on grounds of equity, tive investors may be inhibited by the knowl­ Second. Tax that real gain as ordinary simplicity, and encouraging capital forma­ edge that their real gain can theoretically be income, or permit up to $8,000 of a real tion were contained both in Blueprints for more than 100 percent taxed due to the ef­ net loss as a deduction against other tax­ Tax Reform published by the Ford Treasury fects of inflation. Department, and the Joint Tax Committee's Increases substantially the loss limit from able income, with an unlimited carry­ Task Force Report on Capital Formation. over of any unused loss. the present $3,000. The new $8,000 is in after This clearly achieves rationality and The principle inflation adjusted dollars, so it is even higher Horizontal equity-the principle that those than if the present $3,000 were simply in­ fairness while at the same time greatly who are equally well-off before taxes should creased to $8,000. reduces effective capital gains taxation be equally well-off after taxes-suggests that Eliminates the "lock-in" effect of current for those millions of ordinary investors a procedure should be found to tax capital law which some believe exists since the tax­ who have abandoned the stock market. gains in a. manner equivalent to earned in­ payer knows that whenever the gain is real­ And homeowners, who own their homes come. Since earned income, whether spent ized, it will taxed on a. comparable basis. 5 or 10 years, would benefit greatly. It or saved, increases wealth each year as it is 3. Encourages the government to pursue would lose nowhere near the tax revenue taxed, only those capital gains that exceed policies to sta.b111ze prices since it removes inflation and thereby increase wealth the present windfall to government from the of the Steiger approach, or Ways and should be taxed. The portion of capital gains capital gains tax during periods of inflation. Means variant, according to a study this represented by inflation constitute mainte­ 4. Much more simple and understandable year by Martin Feldstein, the Harvard nance of the value of the original invest­ than the current arcane inter-relation of the economist who heads the National Bu­ ment in the capital asset, and levying a. tax standard rule, alternative tax, maximum tax, reau of Economic Research. This is be­ on that appreciation is the same as taxing 'lnd minimum tax. cause the comparatively wealthy, who al­ part of the original investment twice. 5. Unlikely to lose much if any revenue, ready protect themselves quite well from What the amendment will do even in the short-run. This is because reve­ the effects of inflation by choosing when 1. Increases the asset basis by ratio of the nue that is lost to lower effective rates to realize gains, would pay somewhat December Consumer Price Index in the year charged those who hold assets the longest-­ higher capital gains taxes. This would of sale to the CPI in December of the year and thus suffer the most from inflation­ of purchase. The real gain or loss is the dif­ particularly homeowners-is picked-up from make up for the revenue loss to those ference between the sales price and the in­ those who currently turn.;.over assets rapidly, with incomes under about $100,000. creased basis amount. such as real estate speculators, and are thus This result, I believe, is only fair, since 2. Taxes the real gain at ordinary rates, or presently paying excessively low effective wages and salaries, which contribute to permits deduction of up to $8,000 net real capital gains rates. This dual effect was noted wealth each year, are fully taxed at or­ loss from "'ordinary income, with unlimited in a. widely cited 1973 study by Martin dinary rates. Why should not real capital carryover of unused losses. The taxpayer may Feldstein. gains, which also contribute to wealth, benefit from income averaging in the event 6. Protects against abuses possible through of an extraordinary real gain, which is fair selective realization of capital losses by re­ be treated in like fashion? Do not our no­ since the appreciation was earned over a tions of justice require no less? taining a current year capital loss limit. number of years. With the exception of number (6) each My proposal anticipates several pros­ 3. Eliminates- above point is an advantage over Steiger, pective problems. Chief among these is The 50 percent capital gain deduction, and Jones, or current law. Under the Capital the difficulty of bunching. Since gains the counting of 50 percent of capital gains as Gains Indexation Amendment, of course, the a. preference income item subject to the min­ be-nefit of fair taxation will be shared with are realized all at once, they might drive imum tax and reducing the amount of per­ taxpayers into higher brackets than had sonal service income benefitting from the all taxpayers, while under the other capital the gains been recognized on an accrual maximum tax. gains reduction proposals the advantage of basis over the years in which the asset The 25 percent alternative tax treatment on reduced taxation are shared by only a. hand­ was held. Taxpayers in this circum­ the first $50,000 of capital gains. ful of taxpayers. stance, however, can take advantage of 4. Administrative options- ·A note on indexation income averaging under my bill, an al­ The taxpayer may choose to compute his Many people are justifiably concerned ready well established procedure. capital gains tax himself with fortns, tables about problems that might accompany full and a.ssita.nce provided by the IRS, or indexation of the income tax system. By increasing the loss limit for deduc­ He may choose to submit the minimum There is a critical distinction between in­ tions in the year the loss is realized from required information to the IRS and have dexation of brackets and exemptions on the $3,000 of net losses to $8,000 of net real the Commissioner compute the tax for him. one hand, and the limited indexation pro­ losses, investments in risky ventures, so 5. Regulations and reports- posed by the Capital Gains Indexation 25034 EXTENSIONS OF REMARKS August 8, ·t978

Amendment. Capital gains must be indexed suri~g that we do not allow the same ~!lis­ wlll end control o! competing energy sources in order to treat two taxpayers who have held takes to occur in the coal and uramum by major oil companies. assets different lengths o! time comparably­ industries. Sincerely, and thus fairly according to the principle o! AFL-CIO, ANDREW J. BIEMILLER, Director, Department of Legislation. horizontal equity. Washington, D.C., July 13, 1978. But any given year, all taxpayers are sub­ Hon. MORRIS K. UDALL, ject to the existing tax rate schedules wheth­ Chairman, Subcommittee on Energy and the RESOLUTION No. 133-ENERGY er indexed or not, and so all taxpayers are Environment, The U.S. House of Repre­ Clearly, energy remains one of the major treated fairly according to the principle of sentatives, Longworth House Office problems !acing the United States in the horizontal equity since they are treated alike. Building, Washington, D.C. years ahead. The security and well-being of An illustration DEAR MR. UDALL: This letter reiterates the the nation is threatened by the reliance on The table below lllustrates the tax savings position o! the AFL-CIO calllng for the hori­ importation of oil shipped in foreign vessels (cost) over either current law or Steiger (!or zontal divestiture of alternate energy activi­ from insecure sources. a taxpayer who does not benefit !rom ties o! major oil companies. The AFL-CIO It is essential that the nation embark on Steiger). The example assumes a capital as­ strongly supports legislation which would a comprehensive program that faces up to set was puchased !or $100 in any o! the years prevent a company from owning or produc­ the seriousness of the energy problem. listed along the le!t margin, and sold !or ing more than one form o! energy. ENERGY CONSERVATION $175 in 1977. The columns represent different The AFL-C ro is seriously concerned by the Conservation is an indispensable part of tax brackets (30, 40, 50, and 60 percent). concentration o! energy supplies in the hands of a few large corporations. The result has any comprehensive energy program. Conser­ An asset purchased !or $100 in each indi­ been higher prices for consumers and a re­ vation does not mean a diminishment in the cated year, and was sold for $175 in 1977. duction in the incentive to produce and de­ quality of lite; it does not mean less auto­ Shown in the table is the tax savings (cost) velop sources o! energy which are alterna­ mobile driving, less use of home appliances in relation to either current law of Steiger tives to oil and natural gas. or living in cold, drafty and uncomfortable (assuming the taxapayer is amongst the homes. majority of those with capital ~ains who re­ The history of the oil industry contains Nor does conservation mean no growth. ceive no incentive from Steiger) !or a tax­ many examples of public injury caused by We hold no brief !or those pushing conser­ payer in each o! the indicated marginal excessive power of large oil companies. The vation as a. part of a no-growth philosophy. tax brackets. conflict between the public interest in fair Growth in the economy and conservation of prices and adequate energy supplies, and the TAX BRACKETS energy can and must go hand in hand. corporate interest in high prices is not ade­ Conservation does mean using energy ef­ quately checked by competition in the oil ficiently. It means the manufacture of more 30 40 50 60 industry. Without adequate competition or percent percent percent percent regulation we cannot expect these giants to efficient automobiles and appliances and the act in the interest of the American public. construction o! well-insulated homes and buildings. Real deductible loss if held The oil companies' control over a large since hdore 1968 due to Specifically, we endorse proposals to: the effects of inflation: share of coal and uranium is well docu­ 1. Grant home owners tax credits !or mak­ 1960 •• ______$21.27 $28.36 $35.45 $38.79 mented and the trend is toward even greater ing homes more energy efficient. 1961. ______20. 85 27. 80 34.75 37.95 control of these resources. Fourteen of the 2. Accelerate the development o! man­ 1962______20. 10 26.80 33.50 36.45 top 20 coal reserve holders are oil companies 1963______19.11 25. 48 31.85 34.47 datory efficiency standards for new and exist· 1964 •• ______18.39 24.52 30. 65 33.03 and eleven oil and gas companies account for ing bu1ldings. 1965 •• ______17.28 23.04 28.80 30.81 more than half o! domestic uranium capa'city. 3. Initiate ut111ty rate reform to eliminate 1966 •• ______15. 36 20.48 25.60 26.97 The oil companies have also leased a large 1967 ______13.71 18.28 22.85 23.67 declining block rates and allow for peak­ amount o! land containing shale oil. load pricing. Realf:G~~a~-~~-a~~~------11.22 14.96 18.70 18.69 The price of coal and uranium increased 4. Establish mandatory minimum efficiency 1969. ···------8. 19 10.92 13.65 12.63 rapidly after the OPEC on price hikes. Coal standards for major appliances. 1970______5.64 7.52 9.40 7.53 prices are now 2Y:z times higher and uranium 5. Maintain and strengthen automobile 1971______4. 11 5. 48 6. 85 4. 47 prices have increased more than 5 fold. The 1972 •••• ------2. 61 3. 48 4. 35 1. :7 fleet standards and establish minimum 1973.______(. 93) (1. 24) (1.55) (5. 1) rapid increase in coal and uranium prices standards that would not be burdensome on 1974.______(5. 31) (7. 08) (8. 85) (14. 37) are directly related to the lack of competition 1975 ______(7.68) (10.24) (12.80) (19.11) moderate income families. 1976 ______(9.21) (12.28) (15.35) (22.17) in the production of. these fuels. Reserves of These kinds of tough and stringent con­ coal and uranium are plentiful and the price servation measures are necessary to reduce increases can be justified only in part by the nation's consumption energy growth Note: Table assumes no income averaqinv., or other extraor­ increased production costs. These rapid price dinary adjustments. Additionally, it assumes the asset was rate. However, conservation by itself will increases have hurt the American consumer, not solve the energy problem. purchased outright for cash. This illustrates how much of a increased the damage to the American econ­ benefit fair capital rains treatment would be for homeowners NEW SUPPLIES who have fully o~ned thei.r homes for. mo~e than 4 years, assum­ omy, and lessened the incentive to switch ing a 75-percent 10crease 1n value as 1n th1s example. e to these fuels from on and natural gas. The nation must have new and additional The control over more than one energy supplies of energy. Even with the most strin­ resource lessens the incentive for on com­ gent conservation measures, the nation's panies to develop energy sources which would need for energy will continue to grow. 011 compete with oil and natural gas. The prices and natural gas are declining resources. AFL-CIO SUPPORTS HORIZONTAL While no single source of energy represents DIVESTITURE of coal and uranium affect the price of elec­ tricity and the price of electricity affects the ultimate !uel, it is clear that coal and the demand for oil to heat homes. Synthetic nuclear power are the ones this nation must gas from coal and on from shale wm compete rely upon in the immediate future. HON. MORRIS K. UDALL directly with on and natural gas. We cannot The United States holds about 450 bil­ OF ARIZONA expect the on companies to rapidly expand lion tons o! coal reserves. This is more than IN THE HOUSE OF REPRESENTATIVES the production of coal and uranium and to 700 times the national annual usage of 600 invest in the development of new energy mlllion tons. Even were the nation to triple Tuesdp,y, August 8, 1978 sources when that expansion wlll compete its coal consumption, the reserves would • Mr. UDALL. Mr. Speaker. I would like with and lower the profitab111ty of oil and last more than 200 years. natural gas. Nuclear power, by the end of this cen­ to share with my colleagues a letter I re­ tury, is expected to grow !rom 2 percent cently received from the AFL-CIO. This An independent company producing only of the current total energy supply to over letter expresses their support for hori­ one source of energy would operate more in 20 percent. In terms of today's energy pic­ zontal divestiture and their belief in the line with the interest of the American public. ture, this is the equivalent o! about 7 mil­ An independent coal or uranium company in lion barrels o! oil per day--about the same need for competition between energy a competitive situation would expand its sources. as oil imports in 1976. operations as rapidly as possible despite the Coal has been under attack by environ­ In the midst of the debate on the en­ effect on on and natural gas prices. mentalists and nuclear power is the target ergy bill, it is wise to remember that one The need is urgent to develop domestic o! a well-organized drive to ban its use. of the main reasons we are in this pre­ sources of energy to end the vulnerab111ty of The basis o! the campaign against nuclear dicament is our reliance upon one fuel the American economy to oil embargoes and energy is that it is not sate. We do not source. Because of our total dependence rapid increase in prices by the OPEC cartel. agree with that assessment. The record of upon petroleum, our Federal national Horizontal divestiture would remove a seri­ safety in the nuclear industry 1s among the security requires administration of prices ous obstacle in the way o! reaching this im­ best in all industry. Every etrort must be portant goal. made to accelerate the development of coal and try to take over the roles best pro­ We support this Committee's efforts in in­ and nuclear power while protecting the en­ vided by a free market. vestigating this important problem and urge vironment and maintaining stringent safe­ The enclosed material argues for en- the Committee to report out legislation that ty and health standards.

/ August 8, 1978 EXTENSIONS OF REMARKS 25035

In the nuclear area we urge that steps DIVESTITURE erate more revenue that ought to be spent be taken for the optimum development of The giant oil companies exert an incredi­ on airports and air-safety programs; all of this energy source. Specifically: ble negative influence on the nation's well­ the money raised by these taxes is now ear­ Legislation to expedite the licensing of nu­ being. It is time to end the stranglehold that marked exclusively for those programs. The clear reactors by eliminating the duplication a few companies hold over this major in­ other is that the airlines need· a substantial in reviews by federal and state authorities dustry and the nation. amount of federal aid in the next few years. and by coordinating and streamlining federal We urge the Congress to enact legislation Both decisions may be logical, but they cer­ agency action. that will break up the control these com­ tainly do not compel this disingenuous re­ Prompt formulation of policy and imple­ panies have from well-head to gasoline sult. mentation of programs regarding the nuclear pump. There are more straightforward ways of fuel cycle, including the reprocessing of spent Even now the oil companies are spreading accomplishing the same thing. Congress fuel. their influence into other energy fields and could, for instance, keep the existing tax Expediting establishment of a federal re­ have already secured a major position in the rates and appropriate funds directly to each pository for nuclear wastes. coal and uranium industries. Clearly this is airline. Or it could cut the taxes and let the Expansion of the nation's uranium enrich­ not in the national interest and tends to airlines raise their fares. But if it did the ment capability. hamper the development of other sources of former, voters might not like the idea of a Continued development of the liquid metal energy. profitable airline's getting, say, $250 m1Ilion fast breeder reactor program, including the The AFL-CIO urges the Congress to enact a year from the Treasury. If it did the latter, Clinch River Breeder Reactor now under de­ legislation to prohibit companies from own­ the $3 billion would not be tax exempt. It velopment. ing competing sources of energy.e is not surprising, therefore, that the air­ Continued high level research into other lines and their many friends on Capitol Hill advanced nuclear technologies, both fission find the scheme attractive. But it is lamen­ and fusion. THE NOISY AmCRAFT BILL: table that both houses of Congress seem A nuclear export policy which recognizes about to fall for it. the need to guard against uncontrolled pro­ LAMENTABLE LEGISLATION liferation of nuclear capabil1ty and the eco­ Mr. Speaker, the business pages of the nomic benefits that accrue to the U.S. as a HON. CHARLES A. VANIK paper today continued to report the good result of a strong, appropriately safeguarded, fortunes of the airline and aircraft in­ nuclear export program. OF OHIO dustries. According to the Wall Street At the same time America must direct its IN THE HOUSE OF REPRESENTATIVES Journal, Boeing Co. reported second efforts toward developing such other sources Tuesday, August 8, 1978 quarter earnings rose 37 percent from a of energy as solar, geothermal, biomass, shale oil, coal liquefaction and gasification. These • Mr. VANIK. Mr. Speaker, it comes as year earlier. Boeing is predicting in­ energy sources will be neither cheap nor be no surprise to me that the growing tide creased sales and produ :-tion in the sec­ developed overnight. ond half of the year. The list of airline of vocal supporters for the Noisy Air­ and aircraft companies reporting bonan­ ENERGY AUTHORITY craft Revenue and Credit Act reads zas is growing at a faster rate than the Private industry, by itself, cannot develop like a "Who's Who in the Airline/ Air­ the energy sources required by this country. list of airline associations supporting this craft Industry." However, this $3 billion gift. For that reason the AFL-CIO urges the estab­ gift to these industries deserves closer lishment of a $100 b1Ilion program to help I urge my colleagues to take these achieve energy security through the creation scruting. views and facts into consideration when of an authority that would provide direct In an editorial entitled "This Year's the closed rule for title III of this bill loans, loan guarantees and other financial Treasury Air Raid," the Washington comes to the floor .e assistance to private industry and public Post summed up the problems of this bodies unable to secure private capital. legislation rather succinctly: As we envision it, that program would concern itself with projects for conserving THIS YEAR'S TREASURY Am RAID A BILL TO ENCOURAGE MEDICAL energy as well as projects for developing new Among the leading contenders for the SCHOOLS TO TEACH SPECIALIZED and additional supplies of energy. Under that Great Treasury Raid Award of 1978 is the TREATMENT OF THE RETARDED program, the government would also be em­ airplane noise reduction bill now working powered to launch projects of its own pat­ its way through Congress. Through a unique terned after the TV A concept. back-door device, the bill would divert about HON. BENJAMIN A. GILMAN IMPORTS $3 billion from the Treasury to the airlines OF NEW YORK If the United States is to diminish its de­ during the next five years. The diversion IN THE HOUSE OF REPRESENTATIVES would be fairly painless: no new taxes, no pendence on foreign on it cannot allow the Tuesday, August 8, 1978 current situation to continue. Reliance on direct appropriations, no increase in federal private companies dealing with oil producing spending. The airlines would collect the $3 e Mr. GILMAN. Mr. Speaker, today, I countries is no way to protect the national billion as part of taxes that already exist but, am introducing legislation to amend the interest. · instead of sending the money to Washington, Health Manpower Act to include in the It is time for the United States government they would spend it themselves on quieter existing list of grants offered, a grant to take over the importation of oil and deal airplanes and airplane engines. with the oil producing and exporting coun­ It's a clever idea-if you happen to own an program to encourage medical schools to tries on a nation-to-nation basis. The gov­ airline and need the money to meet federal train personnel in the care of the men­ ernment should determine the amount of oil noise standards or if you happen to be a tally retarded. This is an important spe­ to be imported, negotiate the price to be paid member of Congress and want to give the cialty which is sorely lacking in many of and provide for the allocation. In addition, a airlines a helping hand. But it is, neverthe­ our medical institutions, and which, if specific percentage of oil imports should be less, a bad idea. Anyway you analyze the developed, would allow the medical pro­ carried in U.S.-flag tankers to assure the proposal, it is the imposition of a federal tax fession the freedom and capacity to security of these imports from the whims of for the sole purpose of helping an industry treat the retarded and provide quality other countries. to comply with federal law. Once that prec­ health care for the estimated 6 million PRICES AND TAXES edent is set, the possib111ties are endless for similar taxes to help other industries retarded citizens of our Nation. There is no free market for oil. Periodically meet air-, water-, and noise-pollution stand­ Medical training institutions are pro­ the OPEC cartel meets and sets the price of ducing a high caliber medical profes­ oil. All other energy prices are related to that ards. price--except to the extent that they are The idea works like this: The airlines sional and there are substantial efforts controlled as oil and natural gas have been. would continue to collect an 8 percent tax to encourage our medical personnel to We are opposed to any effort to raise the on domestic tickets and a 5 percent tax on view medicine as a humanitarian ven­ price of crude oil to world level prices with domestic air freight. They would also collect ture, and to expose doctors to an inter­ the imposition of a crude oil equalization an increased departure tax on passengers disciplinary approach to treatment. The tax, and we also oppose efforts to deregulate leaving the country. But unlike other tax Health Manpower Act lists several fields natural gas prices. These measures would money, which goes to the government, this which are important and timely, and in have as devastating an effect on the Ameri­ would be different. Each airline could keep which medical schools should and can can economy as the four-fold increases in up to 25 percent of the ticket tax, 40 percent oil prices imposed by OPEC following the oil of the freight tax and all of the increased invest time and effort to insure that doc­ embargo. In the past rising energy prices departure tax as long as it was spending that tors are receiving a "well rounded' ap­ have had little effect on increasing produc­ much money on new and less noisy equip­ proach to medical education. Several tion or promoting conservation. ment. populations have been pointed out as We are also opposed to the imposition of The key congressional committees that needing special attention, and the list of a gasoline tax unless such a tax would apply have approved this scheme had to make two available grants includes grants for the only to excess consumption above a basic decisions before they even considered it. The study of geriatric medicine, of medicine allotment. first was that the current level of taxes gen- pertaining to women and minority 25036 EXTENSIONS OF REMARKS August 8, 1978 groups. The addition of specialty train­ to call in experts in the field of retarda­ UAF's now in existence have any input ing for the treatment of the retarded will tion midcourse, or modify their curric­ into the medical school curricula, and enable physicians and other health per­ ulums in such a way as to allow for that slightly more than half of the UAF's sonnel to become more sensitive to the greater communication between depart­ contribute resources in the teaching of needs and problems of the retarded of ments and disciplines. Many medical developmental disabilities in the uni­ this Nation, the only disabilities group schools do not havc the personnel or time versities. Clearly more must be done. that cannot speak for themselves. to devote to the treatment of retardation. Medical schools have come a long way The President's Committee on Mental For those schools, grants will provide since the past two decades during which Retardation, a standing committee an incentive to pull together many of educational facilities viewed retardation created by Executive order 12 years ago, the diverse resources presently avail­ with disdain and hopelessness. The Pres­ stated on several occasions that the re­ able. ident's committee report points out that: tarded are underserved by the medical Curriculums can be modified to include Textbooks in psychology dismissed it (re­ community, and recommendations have in the course of study information for tardation) with a few paragraphs under been made by that committee to encour­ the physician relating to the special "Abnormal Psychology" describing the gen­ age improved health care for the re­ problems of the retarded and develop­ eral gradations and the hopelessness of the tarded. In its annual report entitled "MR condition. Pediatricians, in their training, mentally disabled. For instance, in a learned that the defective are condemned to 76: Mental Retardation Past and Pres­ course of basic biochemistry, health per­ helplessness and that the kindest treatment ent", the President's committee stated: sonnel could give special attention to was to urge parents to place their child in Persons with mental retardation must be hereditary chemical metabolic imbal­ institutional care, dismiss it from their lives, served in all health care systems, both medi­ ances which directly relate to retarda­ and turn to the future production of healthy cal and dental, available to the general pub­ children.-As quoted from page 211. iic. To reach all persons in need, a more tion and developmental disabilities, and equitable distribution of health manpower during the study of neurological dis­ Just recently, the Washington Post and resources must be developed. Medical, orders, the problems of cerebral palsy carried an article on a horrible occur­ communication and transportation tech­ might be emphasized. Dental students rence which took place in some New York nologies must be more broadly exploited.­ could learn how to treat the retarded State hospitals. Retarded patients have From Chapter 11, page 133. patient who cannot communicate pain been overtranquilized. resulting in sev­ In another recommendation pertain­ and who might not be able to care for eral deaths specifically linked to tran­ ing to education opportunities open to in­ his own dental needs. Ethical and legal quilizers. The medical examiner from dividuals working with the retarded, the approaches to the question of retarda­ Rockland County, N.Y., stated that this President's committee states: tion and disability could be stressed dur­ tranquilization of the retarded has "con­ Education for health-rela.ted careers ing the course of study, and the man­ tributed to countless deaths by deadening should include training in the following agement of developmental disabilities nervous reactions that would otherwise areas: and retardation could be seen as an on­ serve as a warning," and that "discus­ Consumer participation and social prob­ going process which ties in many of the lems; sions with colleagues indicated that such Interdisciplinary team collaboration in basic skills learned in medical schools. deaths occur nationwide."-July 14, 1978. patient care; More emphasis must be placed on the This is shocking news; and yet, if the Administration of multi-disciplinary serv­ community's role in serving the dis­ medical profession is allowed to remain ice programs; abled, and through a medical course on in the dark about the treatment of the Preventive and public health aspects of community participation and medicine, retarded a,nd developmentally disabled, all health specialties in relation to problems students might learn how to deal pro­ these instances will continue to occur. of mental retardation and developmental ductively with resources that exist with­ disabillties.-Page 137. Researchers are attempting to deter­ in a given community which would im­ mine the causes of mental retardation, The retarded have the right to quality prove the well-being of the disabled in­ and are examining preventative meas­ medical care and it is a sad commentary dividual. ures in this regard. But there are many on the state of this Nation's medical care Attitudinal aspects of retardation and unanswered questions which require when the retarded are glanced over, and disability must be taught from the be­ careful studies and which may take are not afforded adequate care. Parents ginning of a student's career, and an years to answer. Retardation, at present, of the retarded have informed me that emphasis should be placed on restructur­ is a fact of life, and it is wise to accept doctors willing to treat their children are ing attitudes to reflect deep concern with the fact that many of our citizens are few and far between; that doctors often­ the unique needs of the handicapped. retarded and that they require special times cannot communicate with the Psychosocial aspects of retardation and attention. We cannot afford to ignore ps.tients seeking help and that many disability may be taught in psychology their needs. The legislation that I am times quality medical care is available courses, and through exposure to the re­ introducing today addresses an issue only in private schools and institutions tarded will certainly enhance any physi­ which will improve the quality of life for which are too expensive for most parents cian's approach to humanistic medicine. all of our retarded. to afford. With the emphasis on deinsti­ tutionalization, too, the retarded are be­ Presently, many medical schools have Mr. Speaker, I include at this point ing gradually "mainstreamed" into our the privilege of access to UAF's His Holiness will reminiscent of the services of John Neumann, the 19th century Bishop of Philadelphia to patients as soon as the services pro­ remain an event of singular importance who was canonized in ceremonies at the vided are recorded. to me. Seldom h&ve I been in the pres­ Vatican last year. Both were deeply con­ Under such a system, patients could ence of a man whose piety and love ifor cerned about injustices inflicted upon vic­ receive better continuity of care, they all people served as a driving force in tims of poverty, and both sought vigorously would be subjected to fewer repeat diag­ his life. to break down the walls of massive insensi­ nostic procedures and tests, and they The world's 600 million Roman Cath­ tivity and indifference that frustrated efforts could have some empirical basis for eval­ olics may find comfort in the knowledge of the poor to improve their lot. uating the care they receive. that they were blessed, as was the rest The most fitting memorial for Pope Paul VI would be the building of a better world The issue of whether patients should of the world, with the presence of this for the poor and the oppressed. That is an have access to their medical records is intensely holy and spiritual man as the objective worthy of the best efforts of us all.e not without controversy, however. The leader of the church. People of all faiths AMA official position is that records will miss this man who was an impor­ should not be released because the pa­ tant voice ifor the causes of just.ice and PATIENT ACCESS TO MEDICAL tient is not sufficiently knowledgeable to world peace. RECORDS evaluate what he reads. Some physicians Mr. Speaker, I offer for the RECORD the fear the number of malpractice suits will text of an editorial from the Philadel­ HON. HENRY A. WAXMAN rise if patients routinely have access to phia Inquirer which eloquently describes their medical records. Others think the the impact of Pope Paul VI, and his OF CALIFORNIA patient may be unduly concerned about service to humanity. IN THE HOUSE OF REPRESENTATIVES what he reads in his medical files about PAUL VI SERVED HUMANITY AS THE FmsT Tuesday, August 8, 1978 his health. Physicians also want to pro­ GLOBAL POPE • Mr. WAXMAN. Mr. Speaker, one of tect their discretion to comment on the Pope Paul VI in his 15-year reign as lead­ the most encouraging new trends in patient's mental attitude or emotional er of the Roman Catholic Church was above American medicine today is the increas­ problems, without fear that the patient all else a humanitarian. He served God and will later discover the comments and be his Church through service to humanity. He ing role patients play in the manage­ was an activist Pope-a man of conscience ment of their cases. The patient increas­ offended by them. who championed the cause of the poor and ingly is a participant in the decision- This issue is of such importance that 25038 EXTENSIONS OF REMARKS August 8, 1978 for the benefit of my colleagues I would Association has said, "It is our position that 60 percent had questions on vocabulary like to have a recent article Dr. Sidney a physician has both a right and a duty to or meaning; and Wolfe wrote on this subject in the Au­ withhold information in circumstances In "Patients often expressed a. sense o! relief which he reasonably determines that it at having the secrecy removed !rom their gust 1978 issue of Mother Jones re­ would not be in the best interests o! the records and were pleasantly surprised to be printed in the CONGRESSIONAL RECORD. patient." treated as adults." Dr. Wclfe's proposal for patient access to This philosophy o! "doctor always knows Ed Mulllga.n, the man in the photograph, medical records is right in step with the best" not only is patronizing to patients but sums it all up: "A society that denies a. per­ times, with our increasing emphasis on serves as a. cover !or a. more fundamental son knowledge or his own state o! health consumer activism. doctor discomfort. Testl!ying before the Pri­ is toying with tyranny and is able to main­ WHAT Youa DocTOR HIDES FRoM You vacy Commission, Dr. Joseph Boyle, an AMA tain this censorship only because in general official and formerly head o! tlhe California. the victims are weak, sick, alone and help­ (By Sidney Wolfe, M.D.) Medical Association, said that patient access less." For most o! us, it is much easier to get tO records "could result in numerous cases GETTING YOURS our CIA or FBI files than to get our medical ot harm." He could give no specific examples. Getting your medical record can better records. Even though Americans wm spend Boyle added, by way o! general example, that your chances or surviving in the American about $160 b1llion this year on !health care, "some individuals, upon seeing their records, health-care system. What can you do? all we have to show !or it are bills and, in at might decide to treat themselves." That's The Privacy Acto! 1974 already gra.n.ts ac­ least some cases, an improvement in health. true. It people could see their medical rec­ ce..ss to all patients cared for in federally run The records o! why we went to the doctors ords and discover the basis (or lack thereof) institutions such as Veterans Administration or hospitals, what they :round abnormal (or !or various drugs or operations, they might hospitals, military hospitals and Publtc normal) with us, what diagnoses they made, well treat themselves and be better off for Health Service hospitals. what drugs they prescribed or surgery they it. In !act, mosts visits to the doctor are for Some states, such as Massachusetts and performed and whether we improved as a re­ diseases less dangerous than the drugs used Colorado, have laws allowing patients access sult are generally kept !rom us. to treat them. to their medical records, but a survey in Mas­ Take the case o! Ed Mulligan o! Syracuse, The sorry state o! many medical records sachusetts showed that only one out or 16 New York. After !our years o! illness, two is another reason !or the secrecy. Dr. Law­ hospitals unequivocally recognized the right operations and medical opinions as diverse as rence Weed o! the University o! Vermont of patient access to records on request with­ that he had "a 50-50 chance to live" and was medical school, in his excellent book "Your out subjecting the patient to some sort o! "perfectly okay," Ed requested a copy o! his Health Care and How to Manage It," gives an red tape. 'hospital records !rom Community General example o(a. medical record. (See page 12.) To find out what the laws are in your state Hospital in Syracuse. The hospital gave him Certainly, patient access to medical rec­ regarding access to medical records, how to the results or several tests' but denied him ords, especially 1! doctors can be persuaded initiate legal action to get your records, 1f access to virtually all the rest o! his hospi­ to explain what the hieroglyphics mean, will necessary, and how to push !or legislation tal records, stating that such access was not go a. long way toward straightening out providing access in your state, send $2 for "appropriate." Mulligan sued the hospital, these important documents. Weed goes on to the new pamphlet, "How to Get Your Medi­ arguing that he was being damaged by not say that access "may be the most effective cal Record," to Public Citizen's Health Re­ knowing enough about his medical condi­ weapon we have against over-ut111zation o! search Group, Dept. MR, 2000 P Street NW., tion to make an informed choice on what medical care." Washington, D.C. 20036. to do next about his health care. In addition to Larry Weed, a small but (NoTE.-Sidney Wolfe is director o! the New York State did not have a law provid­ growing group o! health professionals are Health Research Group in Washington, D.C. ing patients with access to their medical supporting patient access to medical records. .Mother Jones welcomes letters on the sub­ records, So Ed Mulligan did not do well in Leading the way have been Budd Shenkln, a jects discussed in these columns. Please ad­ the courts. pediatrician, and David Warner, a Ph. D. in dress your question to "Mother's Healer," c/o Next, Ed took to the streets. Almost two public health. Mother Jones, 607 Market Street, San Fran­ years a.!ter !his original request to see his They proposed, in an article in the New cisco, Callforn.la. 94105.) records he started picketing Community England Journal of Medicine in 1973, that General Hospital, carrying a sign saying "legislation be passed to require that a com­ "This Hospital Has Something To Hide." plete and unexpurgated copy or all medical THE ROAD TO PROSPERITY-PART After he had picketed !or several weeks, records, both inpatient and outpatient, be XVI-WHAT IS THE PRESS SA YINO generating adverse publicity !or the hospi­ issued routinely and automatically to pa­ ABOUT THE INVESTMENT INCEN­ tal through television and other media cov­ tients as soon as the services provided are re­ TIVE ACT erage o! his activities, the hospital offered to corded." let Ed see a laundered version o! his records. Supporting their proposal, they argued Much but not all o! what he wanted was that patients would receive much better con­ HON. WILLIAM A. STEIGER tinuity o! care, would be subjected to !ewer there, but Ed was still not satisfied. OF WISCONSIN He appealed to New York state legislators repeat tests and would be tree to choose and to pass a law providing patients with com­ change physicians more eas1ly, since they IN THE HOUSE OF REPRESENTATIVES plete and unrestricted access to their medi­ could make better judgments about their Tuesday, August 8, 1978 cal records. He succeeded in getting just such tdoctors. Patients would be more autonomous a b111-guaranteeing access at least to hos­ in making choices. • Mr. STEIGER. Mr. Speaker, I confess pital records-passed in the lower 'house, or This is just what the doctors rear. This that I sometimes fall into the same trap Assembly, only to have it stopped in the lessening of patients' dependence on doctors in which many who work in Washington state Senate. would make them !eel less like paranoids and find themselves. That is, we often look But Ed kept trying, and on October 1, more like active participants in an egalitar­ upon the Washington Post and the New 1977-through rules drawn up by the New ianized doctor-patient relationship. York Times as the sole spokespersons for York State Board o! Regents-it became "un­ At a clinic in Vermont in which patients the press. Not only is that wrong, but it professional conduct" !or a health-care pro­ are routinely given their medical records, a vider to refuse to supply a patient with a survey of 100 consecutive patients who had can lead us to erroneous conclusions. copy o! his or her medical records. One loop­ seen their records showed tha. t: One such error would be to believe that hole, 1however, was that a doctor could "with­ 80 percent were much more careful about the Nation's press is opposed to relieving hold information it its release would ad­ following specific recommendations in tak­ the high tax burden on capital. As I was versely affect the patient's health." The loop­ ing their medications; reminded by one of mv district's news­ hole can be partially plugged: patients may 78 percent indicated they had made papers, the Plymouth Review, this is not protest a denial by putting the burden on dhanges in their patterns o! living, eating or true. Today, I am inserting in the RECORD doctors to state the reason !or the denial in drinking after reviewing their own records; a selection of editorials in support of a writing within 30 days. and lower tax on capital gains. Included is Arter hundreds o! hours o! testimony on 97 percent were less anxious about their an article from the Washington Post on access to medical records by dozens or wit­ health after reviewing their own records. the plight of the investor. I would urge nesses, the Federal Privacy Protection Study The doctors at this clinic have said, "It is Commission stated that "not one witness was the Members to read these editorials, and our ph11osophy that the medical record be­ a selection which I will include tomor­ able to iden tl!y an instance where access to longs to the patient, and that he has a. right records had had an untoward effect on a to all or 'the information within it." row, which represents the opinion of pat.lent's medical condition." In a. rehab111tation hospital, also in Ver­ newspapers from all sections of the It many patients want their records, and mont, a study of 103 consecutive patients country. if there is no evidence of adverse effects from given the medical notes on their admission [From the Plymouth (Wls.) Review, June 29, getting this information, why is it so difficult 1978] . to get? evaluations within two days after they en­ tered the hospital showed that: INVESTMENT, NOT CARTERISMS, NEEDED FOR Organized medicine and most doctors just 50 percent, as they read the notes, made U.S. FuTURE don't want patients to know what is really some addition or correction on a. point of Residents o! this area who know or have being done to them. The American Medical fact; voted for Rep. Willla.m Steiger must be get- August 8, 1978 EXTENSIONS OF REMARKS 25039 ting a charge out of his recent national eaten. It would make approximately as much (From the Cincinnati Enquirer, June 29, prominence as a sponsor of a bill to reduce sense for Mr. Carter to declare that seed corn 1978] the capital gains tax to where it was about should be eaten as fast as corn grown for the CAPITAL GAINS-8TEIGER PROPOSAL AN ALTER­ a decade ago. dinner table. But that is something a vet­ NATIVE TO THE NEW DEAL Even President Carter has found it neces­ eran farmer would not say. There is some encouraging evidence of sary to lambaste the Steiger blll in a press No, it is an ethical impulse-the instinct Congress' slow awakening to economic real­ conference. for what is conceived to be "fair play" in ities in the widespread support garnered by The president unfortunately, has lowered taxation-that explains Mr. Carter's senti­ Rep. William A. Steiger (R-Wis.) and Sen. himself to spouting economic poppycock. He ments. The basic consideration, it seems, is Clifford P. Hansen (R-Wyo.) in their effort sounds like a modern Huey Long, the old that only the "rich"--or at least the wen-to­ to revise the nation's tax laws with respect Louisiana demagog, who liked to appeal to do-gain income from capital transactions. to capital gains. the "common man" by ra111ng at the "mil­ And since this income is privileged-is lim­ If the Steiger-Hansen plan succeeds, many lionaires." ited to those who save and invest--it is un­ orthodox economists believe, the U.S. econ­ It's easy, of course, to say, as Carter does, acceptable. omy wlll be strengthened, job opportunities that capital gains are something only the Admittedly, most capital transactions like­ wlll grow, total federal tax revenue will "rich" worry about. ly to be taxable as capital gains are indeed increase, the federal deficit wm shrink and But sllly. engaged in, and of primary benefit to, those the infiationary pressures will be somewhat Capital gains really means profits on long with significant capital to invest. There are ameliorated. term investments. Current law can take 49% those who stm entertain the quaint view Notwithstanding these economic elemen­ of such gains, meaning you and Uncle Sa.m that this is, in essence, what "capitalism" tals, President Carter, at his news confer­ are sharing about 50-50 on the fruits of your means: It is an economic system that offers ence Monday, chose to portray reform of the risk and wisdom in making an investment, special incentives to those who save their capital-gains tax structure as a measure that whether it be in a house or a business ven­ money and invest it in productive and profit­ would be of exclusive benefit to a handful ture. able enterprises, hoping to enrich themselves of millionaires-an analysis that scarcely ex­ Steiger has proposed, and has won tremen­ thereby. plains its widespread support in Congress. dous congressional support in both parties, Millionaires, after all, are not a sizable vot­ that the gains be rolled back to a maximum Not that we understand President Carter to be anti-capitalist; yet here, as on some ing bloc that Congress normally seeks to of 25%, just the way they used to be · in serve. 1969. other tax questions, his analysis seems super­ ficial. When you anchor tax policy entirely Indeed, the President went so far as to The significance of this to most of us is declare that he would veto a tax package of that investments produce jobs, new business to your approval or disapproval of the income style of the "rich," you leave a lot out. which a reduction of capital-gains taxes opportunities, new careers for mill1ons of figured prominently. It he sticks to that people. A more intelligent approach to tax policy, and one that may even point the way to resolve, it may mean no tax cut at all this Investment must precede any new business year-despite the overwhelming evidence or the expansion of any old business. greater general economic benefits, is to ask "macroeconomic" questions about the cap­ that lower taxes are precisely the medicine Who really cares whether the profits go to the economy needs. a millionaire or to a "little guy"? Most of the ital gains tax. What effect do significant changes in the capital-gains tax rate have As matters now stand, taxpayers in general millionaire's income will be taxed away any­ are allowed to deduct half of their capital way. And we all will benefit from invest­ on the way investing people handle their ments, one way or another. funds? Is it true (as reliable figures sug­ gains from income. Since income-tax rates gest) that the higher rates since 1970 have range from 14 percent to 70 percent, that What we need is a renewed commitment means that rates on capital gains in effect to investment in this country so we can cre­ lessened federal revenues from that source? ate more jobs, can upgrade our aging indus­ Is it true (as again seems to be the case) run from 7 t'ercent to 35 oercent. Before 1969, trial plants, can counter infiation caused by that the post-1970 rates have made equity however, there was a 25 percent cemng on declining productivity, etc. capital less mobile and less fiexible, with the the capital-gains tax rate. Many objective studies have shown that ultimate effect of creating capital shortages Several changes in tax laws since . 1969 the nation that invests prospers. America. has and driving businesses to rely the more on have broken through the 25 percent cemng. been lagging and so has our economic well­ borrowing for expansions and acquisitions? Among them: being. There are those who say so; and they have A provision limiting the 25 percent maxi­ Our tax laws are largely responsible. impressive figures to back their claim. mum to the first $50,000 ~f ca.pital gains. The president is showing once again that Thus the argument for the Steiger Amend­ Gain-; above that amount can now be taxed he, congress and public opinion are far apart. ment is that it could: Increase total rev­ at hi~her rates. If he wants to get the country moving enues, from capital transactions; stimulate A "minimum" tax providing that taxpayers again, as one of his famous Democratic pred­ the price of stocks; free investment funds have to pay taxes of at least 15 percent on ecessors once promised, he ought to be which, adventurously invested, would in turn "preference" items such as capital gains. The praising the Steiger plan instead of con­ create new enterprises and new jobs-sev­ tax code exempts the greater of $10,000 or demning it. eral hundred thousand new jobs by some half a taxpayer's regular taxes . from the Incidentally, Democratic Rep. James Jones estimates. Since all these results would minimum tax, however. of Oklahoma is also proposing to limit cap­ achieve good things (economic growth, high­ A law increasing taxes on wages and sal­ ital gains taxes to 35%, a compromise figure. er tax revenues, new jobs) which the ad­ aries for people benefiting from the preferen­ So, you see, somebody is getting the word. ministration claims to favor, is it not evi­ tial capital-gains rate. Under current law, the We hope it penetrates to the White House. dent that Mr. Steiger's measure would do maximum tax on wages and sala.ri~as op­ more public good in toto than another round po.c:ed to "unearned" inco·me such as interest [From the Washington Star, May 25, 1978] of soak-the-rich boots in capital gains taxa­ and dividends--is 50 percent. But the THE STEIGER AMENDMENT tion? It is to many. amount of "earned" income that qualifies for the maximum is reduced dollar-for-dollar by There's a natural tendency in any season Happily, we would remind the skeptics, this is a more than theoretical question. It the amount of capital gains excluded from to treat tax policy as a branch of theology, regular taxation. and it's been heightened by the' Carter ad­ is a question as to which, using tax and ministration's moralistic language on tax re­ revenue data now readily available, fairly The combined effect of these modifications form. precise predictions may be ventured. To has been to increase the maximum possible No one in his right mind argues that the doubters, we recommend a study entitled tax rate for ca.pital gains to 49.125 percent, tax code shouldn't be anchored in a broad "The Economic Effects of Reducing Capital even though it is unusual for a taxpayer to conception of the public good. But the best Gains Taxes" by Michael K. Evans of Chase incur the maximum rate. route to that good, once identified, is usu­ Econometric Associates, Inc. Mr. Evans' rosy Even taxpayers making more than $200,000 ally debatable. Tax ethics do get complicated. forecasts of the 1980-85 benefits of the a year, says the Treasury Department, pay With the preamble, we turn to a hot topic Steiger Amendment (two-tenths of a per cent taxes, on the average, of only 37.1 percent on of the hour-Rep. William Steiger's surpris­ higher growth in GNP; 440,000 new jobs; a their capital gains. ingly popular initiative to reduce capital 1 per cent rise in expenditure for plant and The Steiger-Hansen argument is that res­ gains tax rates. Mr. Steiger's amendment, equipment; and a $16 billion reduction in toration of the 25 percent ceillng on capital which has solid bipartisan suooort, would roll the federal deficit) are not out of line with gains would revive the attractiveness of the back those rates to the pre-1970 level. Yet it other predictions by business economists. very sort of investment that is indispensable irks the administration tax reformers might­ We do not pretend to know whether the to the nation's economic health. Beyond that, ily; and threats of a veto for any tax bill in­ results would be as advertised. But those they believe, the result would be expanded cluding it are in the air. who scorn the Steiger Amendment should be earnings and a net gain in federal tax reve­ Why? Theology, in a word. President Carter asked to counter such forecasts as Mr. Evans' nues. has said-with the air of a man chiseling with more than the sour old complaint that Opponents argue, of course, that what stone tablets-that capital gains should be private investors would make a lot of money Representative Steiger and Senator Hansen taxed "like other income," and that implies out of lower capital gains tax rates. So they propose would prove of benefit only to the not a cut but an increase in the rates. Just would, obviously. But if overriding public wealthy-an argument that ignores the ex­ why Mr. Carter takes this view is not clear. We benefits also accrued, who could complain? tent to which the nonwealthy depend for distinguish, as a rule, between capital and Is the ethical price too high? Where, in other jobs on the ava1lab111ty of investment capi­ Income; between nest eggs and eggs laid to be words, is the disgrace of such a tax policy? tal. Critics also are less optimistic about the 25040 EXTENSIONS OF REMARKS August 8, 1978 overall impact on the federal government's in his treatment of the inhabitants of an trend the Congress should undo what it did tax revenues. occupied territory. "Better the innocent in 1969 when it increased the maximum tax Congress, however, seems to be looking for should suffer," said he (reversing an older rate on capital gains from 25 percent. It is an alternative to warmed-over New Deal doctrine), "than the guilty should escape." now 49.1 percent. Mr. Steiger's proposal has remedies for bolstering the economy, and Well, if that is the case, and that is the gathered considerable support in the Con­ more and more of its members are beginning only way in which Mr. Carter sees it, then gress, much to the Carter Administration's to recognize the conventional economics of we may have to kiss goodbye any hope of a consternation. the Steiger-Hansen proposal as an answer. reduction in the capital gains tax, or in the If it becomes law, there is no doubt that double tax:~.tion of dividends, for so long as wealthy people will benefit since they are the [From the Journal of Commerce, he remains in the White House and ca':1 ones that invest in stock, in real estate and June 29, 1978] prevent Congress from overriding his vetoes. other ventures. But the key question ~s its SHOULD INVESTORS ESCAPE? But in this case it begins to look as though effect on the general economic health of there is enough support in Congress to push America, on which all Americans depend. There was an element of piquancy, to put across the Steiger amendment, or at least. Steiger proponents cite the forecasts of one it mildly, in the responses Mr. Carter made the milder Jones amendment, to do just economist who predicts that lower capital at his Monday press conference to questions that. So prospects are not altogether that taxes will encourage investment to the tune posed as to his attitude toward proposed hopeless. of an additional 400,000 jobs and a reduction cuts in the capital gains tax, which currently In the meantime, Messrs. Carter and in the federal deficit of $16 billion. Their enjoy considerable support from his own Blumenthal and their associates have some opponents argue that the proposal will cost party in Congress. very difficult explaining to do. On one hand, the federal treasury over $2 billion a year The President and his Secretary of Treas­ they want more private investment as a and that stock investment will not be sub­ ury, be it remembered, have indicated more means of providing more employment b y stantially affected since the vast majority of than once their concern about the lagging stimulating the economy. On the other corporate gains occur on real estate, not in rate of capital investment in this country. hand, they are unwilling to accept any mean­ capital stock. They have also expressed more than once ingful relaxation of the tax laws inhibit­ Those differences are the basis for an their intention of doing something about it. ing priv1te investment that seem to favor earnest, and profoundly important, debate. But neither has shown much more willing­ investors. In lashing out at the rich and by offering no ness to explain just what they want to do It ought to be obvious that they can't do bold solution of his own. Mr. Carter has re­ about it than to explain that their interest both at the same time. And if they can't duced his side of the debate to superficiality. in doing something is more for the purpose then either Mr. Carter · or somebody elE -~ If there was any value in Mr. Carter's state­ of getting George Meany and the AFL-CIO speaking for him has to explain why they're ment tt was that it may increase that de­ hierarchy off their backs than anything else. trying to do the one and not the other. o·· bate, over the Steiger Amendment and alter­ There is no better way known to us of is somebody deep in the White House base­ nate proposals. That debate should focus on stimulating private investment in productive ment trying to figure out a way in which the ne-ed to enhance capital growth, which is industry than by sharply reducing double the wealthy and the middle class can be a problem that effects all Americans regard­ taxation on investment income. And there is eliminated altogether and replaced as in­ less of wealth. no better way of doing that than by reduc­ vestors in American industry by the poor ing, if not by eliminating almost altogether, and disadvantaged? ]From the Orlando Sentinel Star, the current tax on capital gains. This is con­ Well, if the currently popular doctrine of June 30, 1978] templated by the Steiger bill, which would income redistribution is carried fa,r enough, reduce it to its pre-1969 rate of 25 percent, UNWISE VETO perhaps th3.t's exactly what will happen If Jimmy Carter follows through his and by the compromise Jones Amendment some years hence. But if it does, there wlll that would cut it modestly to 35 percent. threat to veto the congres!:ional tax cut plan, It is, however, the widespread congres­ be a totally new investing class to deal with, it could be the most serious political mis­ sional support for the more drastic Steiger and a totally New Poor to be fed, housed take of his presidency. bill that is giving the White House so many and clothed out of the public trough. Carter's main objection is that the tax worries. breaks in personal exemption deductions and The President, it appears, opposes both. [From the Philadelphia Inquirer, the proposed changes in long-term capital He did not say outright at his Monday press June 28, 1978] gains taxes favors the upper and middle conference that he would veto either (per­ MR. CARTER OVERSIMPLIFIES THE CAPITAL classes more than the poor. haps because the questions to which he was GAINS DEBATE The president is right, of course, and to responding were not phrased sharply In opening his Monday press conference endorse the plan is heresy in the school of enough). But he did leave the impression with a 356-word statement denouncing the populist politics that spawned him. He obvi­ that if either, or a combination of the two, so-called Steiger Amendment, President Car­ ously still sees anti-rich rhetoric essential should pass both houses, a White House veto ter failed to utter a word about the problem to his recovery in the public opinion polls. was very possible. of capital formation, which is precisely what From a purely moral standpoint, his stand Why? In his responses he didn't mention the ongoing debate over Rep. William Stei­ is consistent with his campaign characteri­ his former insistence that private capital ger's plan to reduce the capital-gains tax is zation of the taxing system as a disgrace investment in industry was any longer on all about. But Mr. Carter talked as if it was and an abomination. Total reform to insure his mind at all. No, as he put it, "both of not hing more than a rip-off plan by the rich that everyone in the country pays his fair these proposals apply basically to the desire to get richer at $2 billion expense to the share of the tax burden might be the best of some members of Congress to remove part country's working people. thing that could happen to the U.S. economy. of the income of very wealthy taxpayers from Pitting the rich against everyone else But from a practical standpoint, even the minimum tax." That was a reference to might be expedient politics and an easy way Carter has learned that complete tax reform a law passed by Congres3 several years ago to buttress Mr. Carter's populist image, but is an impossibilJty with a Congress in which requiring that wealthy persons pay a mini­ it does n ot hing to further public understand­ special interests reign supreme. Like a lot of mum tax regardless of the source of their in­ ing about the need for finding an effective other politicians before him, he has all but come. and equitable way to build the productive abandoned efforts to accomplish it. In other words, the reductions in the cap­ foundations of the American economy, which Unable to obtain the deal, Carter should ital gains tax as proposed by the Steiger and in many areas are severely and dangerously make the best of the opportunities available Jones bills should be rejected entirely be­ weak or out of date. to him. The Congress seems to realize what cause some of the better-off folk might ben­ Capital is the bedrock on which all indus­ Carter has not grasped-that something efit from them. This is in the truest populist try must stand-or without it, falL Most vi­ must be done to stimulate investment and tradition, which holds that anyone in any tally, it includes all productive plant and refuel America's busineEs machine. In the kind of a position of wealth came by it either machinery. Without sound, well-financed long run, that can do more to expand the through inheritance or by exploiting the less capital underpinnings, major segments of the eccnomy and create new jobs than all the fortunate people in the nation. No govern­ economy atrophy and fall behind better­ federal tinkering with interest rates, dollar ment action strengthening this position capitalized foreign competitors. In such cir­ values and import quotas. should be tolerated. cumstances, the economy will sputter, tech­ The sudden urge among lawmakers to give This attitude is hardly limited to Mr. nological advancements will be retarded and tax money back to the middle and upper Carter. It has, in fact, been frequently jobs will deline-affecting the very people income level citizens is a direct result of the expressed in one way or another by a num­ Mr. Carter says he is concerned about. tax revolt movement sweeping the country. ber of Capitol Hill millionaires, and seems The lack of adequate investment is a grow­ People are finally beginning to realize that to have been accepted lock, stock and barrel ing concern that is shared by economists, government spending is the biggest contrib­ of Massachusetts' Sen. Edward Kennedy, labor leaders and businessmen of all politi­ uting factor to inflation and tlhat the tax who hardly rates among what President cal stripes. Mr. Carter's Council of Economic burden of financing is getting too heavy to Roosevelt once called "the ill-chd, ill­ Advisers added its own voice of concern in carry. housed and ill-fed" one-third of the nation its last annual report. "At a time when strong While it is not as idealistic and politically Stlll and all, when we hear a reduction in" growth in capital stock is needed to meet moral as taking from the rich and spending the capital gains tax discussed in those future goals, investment appears to be drift­ it on behalf of the poor, there is merit in any terms we are reminded of the retort given ing below normal trends. This drift must be plan that results in tax dollars being spent by one of Sweden's great warrior kings to reversed." by those who earn them rather tban by the accusations that he had been all too cruel Rep. Steiger believes that to reverse the federal government. August 8, 1978 EXTENSIONS OF REMARKS 25041 Any politician who vetoes a tax cut this is that the immense growth of pension sys­ are also for greater productivity, which is a year does so at considerable risk. tems, funded largely by investment in com­ measure of how efficiently we use manpower, mon stocks, has shown that nearly every­ materials, machinery and money. We've meas­ [From the Washington Post, August 5, 1978] body-directly or indirectly-now has a stake ured poorly of late. TODAY's· 'FORGOTTEN MAN': THE INVESTOR in business profits and dividends. It is no Members of the Joint Economic Commit­ longer just the rich cUpping coupons. tee of Congress are hearing again from the (By Clayton Frltchey) These days, when it comes to cutting the experts that our recent poor record is a Back in the New Deal days, President corporate pie, the stockholders get what's problem that no longer can be ignored. Franklin D. Roosevelt dubbed the American left after management, the employees and That is what they heard years ago, too. worker as the "forgotten man." Times have the tax man get theirs. The executives get up Meanwhile, the record has worsened. Vital as changed: Today the "forgotten man" (or to a million dollars a year or more in salaries, it is, improved productivity seems to be one woman) is the American investor, especially often with comparable sums in bonuses and of those issues always postponed, if not the small or average stockholder who mostly huge expense accounts, plus enormous pen­ totally ignored. is earning only a pittance on his savings. sions, and such perquisites.as hunting lodges During the years since World War II the In the last decade, over five mlllion Ameri­ and private planes. rate of improvement has been 3.2 percent a cans have dropped out of the stock markets, Most organized workers now get yearly pay year, but during the past decade it has fallen and it is easy to see why. Over that period, increases, often along with additional adjust­ to just 1.5 percent, and is not likely to get stocks have averaged a return of only 2.8 to ments for infiation, plus large "fringe" bene­ bll.ck to 3.2 percent before 1990 at least. 3.3 percent, depending which index is used, fits for health and unemployment protection. While the United States, whose industrial or less than half the average infiation rate Half of the Social Security contributions are ::;uperiority was built by rapid productivity for the same years. also paid out of company funds, as is the increases, chugs along somewhat wearily, the Since Jan. 1, 1977, the Dow Jones average case with many pension programs as well. rates for Japan, West Germany and some has dived from 1004 to around 880. Faced other trading partners race ahead. with minuscule return and minus growth, it Finally, after local and state taxes are A report just issued by the nation's pro­ is hardly surprising that the publlc is now paid, in addition to a federal income tax of ductivity center indicates rates in Japan and reluctant to invest in often risky common 48 percent on earnings, there is little possi­ West Germ:1.ny might average between 4 per­ stocks when they can get a much higher re­ bility of substantial dividends. Moreover, U.S. cent and 6 percent a year through 1990, while turn from guaranteed savings accounts or corporatlons now pay out only about 44 per­ that for the United States lags under 3 government bonds. cent of their earnings in dividends, whereas percent. in the 1960s the p-ayout averaged 50 to 60 As Arthur Burns, former chairman of the percent. In other words, one could argue, the com­ Federal Reserve Board, has noted, we no petitive position of American-made goods longer "have a healthy environment for in­ In its spontaneous embrace of the Steiger can be maintained only by taking a smaller vestment." It is drying up. "Venture capital," approach, Congress has perceived that if profit or by assistance from the federal gov­ Dr. Burns says, "is virtually dead in our coun­ there is no relief for the ordinary investor, ernment--that is, protectionism. try. The spirit of innovation, of business en­ the government could well kill the goose that In the sense that this is a semi-capitalist terprise, of capital investment," he adds, is has laid so many of the golden eggs of Amer­ country, such a turn would bring the end in not what it used to be. ican private enterprise.e sight. The spirit of free enterprise that Even administration officials who oppose helped spur a productivity surge in the past the Steiger plan to stimulate the economy century might be suffocated. through a reduction of capital gains taxes, ECONOMIC WONDER CURE: The alternative--licking the problem and agree with the Burns assessment. "The facts STRENGTHEN PRODUCTIVITY restoring greater productivity-would on the are indisputable," says Treasury Secretary other hand shower the populace with such Michael Blumenthal. "Our financial system benefits that one wonders how it can be is providing insufficient equity capital. We HON. JOHN J. LaFALCE ignored, as sometimes it is. aren't investing nearly enough in productive OF NEW YORK George H. Kuper, executive director of the plant, equipment and technological innova­ IN THE HOUSE OF REPRESENTATIVES National Center for Productivity and Qual­ tion." ity of Work Life, tried to underscore this The reas·on the tax relief proposed by Rep. Tuesday, August 8, 1978 point in his report, "The Future of William Steiger (R-Wis.) has caught fire on e Mr. LAFALCE. Mr. Speaker, in past Productivity." Capitol Hill is not because Congress is eager years, the United States had the highest If it had merely increased over the past 10 to further enrich the already rich, but simply years at the same 3.2 percent rate of the because it belatedly has come to reallze that rate of productivity growth of any na­ previous two decades, he said, "the differ­ something must be done to encourage eco­ tion in the wodd ~sa rec;ult of our intelli­ ence would have meant an additional $100 nomic growth and increased productivity, the gence, investment, and innovation. In billion in real GNP ..." twin pillars of general prosperity. recent years we have slioped to the bot­ GNP is gro:::s national product, the total of Proponents of the Steiger plan contend tom of the list of industrialized nations goods and services, of steel and bicycles and that cutting the capital-gains tax would in productivity growth, and our economy raise stock prices ( 40 percent, according to food and vacations and houses and nursing one study), as well as generate investment, and balance of trade reflect this decline. care and day camps and security and tech­ profits and employment, thus bringing the An article printed in the Buffalo Eve­ nology and clean air and water. Treasury more, rather than less, revenue in ning News yesterday notes this fact and In addition, productivity increases would the long run. recognizes that it is going to take a seri­ have meant more general tax funds, and per­ Opponents scoff at these claims. President ous and sustained effort to restore the haps enabled us to obtain the tax relief that Carter himself has referred to the drive to so many Americans now want but cannot ease capital-gains taxes as offering "tax wind­ United States to its prominence in this have without a reduction of services. falls for m1llionaires." Admittedly, there are field. In fact, it may be well into the The ingredients of productivity are per­ other, and perhaps more effective, ways of 1990's before we can even climb back haps better known to Americans than to any using tax incentives to attack economic stag­ to I?roductivity growth rates now being others, because for decades Americans were, nation, but the Steiger plan, or some varia­ achieved by other industrialized nations after all, the greatest innovaters, the smart­ tion of it, is the only one that now has the Since we have neglected Productivity fo~ est managers, the most daring investors. votes. such a long time, we will have to again Reselling these ingredients to Americans There is a consensus that it is at least a acquaint ourselves with the requirements is somewhat compared to teaching a once step in the right direction, and can possibly healthy adult how to walk and talk, skills be followed up later with complementary of achieving that improvement. This, that he or she once learned enthusiastically measures, such as reducing the corporation however, is something that must be done. and almost intuitively. income tax, eliminating or reducing double As noted in the article, if we are success­ All Americans are familiar with some of taxation on corporate earnings and divi­ ful in this effort. we will have found an them: la,bor-management cooperation, sup­ dends, raising investment tax credits and "economic wonder cure" for many of our port for science and technology, creation of similar rellef if the situation then seems present ills. an economic climate that encourages capital to call for it. I commend this piece to the attention formation. and risk-taking. The Steiger approach has strong backing The list includes government incentives in the Senate as well as the House, with both of my colleagues for its insight and can­ dor, and offer it here for reprinting: to stimulate private enterprise, the reform Sen. Robert Byrd, the ma1ority leader, and of government regulation, more efficiency Sen. Russell Long, chairman of the Senate ECONOMIC WONDER CURE: STRENGTHEN in government. And at least one more, as Finance Committee, in its corner. Long PRODUCTIVITY noted in the center's report: "Better public thinks the White House has "misread the (By John Cunniff) understanding of the necessity of improving mood of the country," and a new nationwide NEw YORK (AP) .-Want to reduce infia­ productivity." poll confirms that opinion. It found a "strong tion, raise the quality of life, lower the for­ sentiment" in favor of special tax breaks for Improvements in all other areas of the capital gains. ehm payments deficit, improve the cities, productivity issue depend on such under­ solve pressing social problems, create jobs, standing, but it is not easy to put across. No One reason Congress is not impre'>Sed by extend leisure time? Carter's talk about handouts to plutocrats, easier than teaching an adult to walk after You do, of course, so it follows that you he lost that intuitive skill.e 25042 ·EXTENSIONS OF REMARKS August 8, 1978 AN ENVIABLE FLIGHT SAFETY The fact that foreign traffic controllers proach checklist and review the clearance RECORD give clearances in broken English only adds for proper approach procedure. to this stress. The 1977 KLM-Pan Am ground Rail is the reminder to tune and ldent1fy collision in the Canary Islands stands as a Radios needed for the approach. HON. WILLIAM L. ARMSTRONG grim example of what can happen if clear­ Road is the reminder to Review the ap­ ances are misunderstood. proach plate (a diagram depleting pertinent OF COLORADO So. it was only natural for me to realize airport and arrival procedures) for field el d­ IN THE HOUSE OF REPRESENTATIVES that cockpit discipline, coordination and vatlon, minimum descent altitude and the Tuesday, August 8, 1978 alertness were synonymous with safety. missed approach procedure. Numerous trips with crew members I had West coast rail road has created a think­ e Mr. ARMSTRONG. Mr. Speaker, never flown with before impressed on me the ing process. It develops, in an orderly man­ Frontier Airlines, headquartered in Den­ need for quality training and standardized ner, a time when certain actions must be ver, Colo., enjoys an enviable safety procedures, especially during approach and taken. Because of the relaxed activity during record. · Vogue magazine recently sur­ landing. cruise, a crew coming out of an enroute A DAILY HABIT cruise condition usually does not have an veyed the safety records for all major accelerated thinking process. This is when airlines, and concluded that Frontier I went to work for the CAA in 1957 and the thinking process must be stimulated, has the best 10-year safety record. One was assigned to Frantier as an inspector. I and West coast rail road does the job. factor which contributed. to achieving noticed some variance in cockpit techniques and discipline by Frontier crews. After dis­ THE HUMAN ELEMENT this fine record is Frontier's development cussing this with Frontier's management, Hundreds of hours were spent with mem­ of systematic landing and approach many improvements were made during the bers of flight operations and flight training techniques. My colleagues, many of next few years. When the airline industry discussing human factors-how a pilot re­ whom fly millions of miles annually, may begP.n replacing piston-powered aircraft with acts and is capable of reacting during the well be interested in the following article more complex modern jet-powered aircraft approach and landing phase. which details Frontier's efforts to make the "revolution" in approach and landing When working with human beings and landings standard procedure. techniques took place. aircraft, incapacitation of a crew member in [From the Frontier Magazine, July 1978] Frontier was ready for the jet age before flight is always a concern. Frontier's ap­ the first jet-powered aircraft joined its fleet. proach and landing technique was developed THE RIGHT APPROACH In the late 1950's, Captain Elmer Burson, with this in mind. Crew members are disci­ (By Richard Brice) Chief Pilot in Phoenix, and I spent many plined to operate in such a way that it's some pilots regard FAA inspectors with hours discussing various changes in operat­ obvious to the other crew member if partial the same friendly spirit in which a motorist ing procedures that would be required when incapacitation, such as fatigue or even de­ looks at a traffic cop. Frontier replaced its Douglas DC-3's with pression, is becoming a problem. I'm happy to say I didn't find this to be modern aircraft. As an FAA inspector, I found the confi­ the case with Frontier's flight crews when In 1960, Captain Chick Stevens became dence developed among Frontier's crews by I was assigned to the airline. They've co­ Supervisor of Flight Training. Shortly, there­ the present approach and landing technique operated in a unique program to reduce risks after, Captain Ken Dealy was named Director caused the Frontier pilot group to be very during the most critical period of any flight, of Training. Burson, Stevens, Dealy and I strong and aggressive on periodic flight namely the approach :..nd landing phase. developed Frontier's present approach and checks. The non-proficient pilot stands out landing procedures. THE NEED FOR STANDARDS among his fellow airmen. Pride causes him In recent years the National Transporta­ to perfect his act. Prior to my employment in 1957 with the tion Safety Board has made many recom­ FAA's predecessor, the Civil Aeronautics In developing the approach and landing mendations for cockpit coordination and technique, priority was given to making Administration (CAA), I served as pilot-in­ discipline during approach and landing. command on Douglas DC-6Bs assigned to pilot reaction a habit, a kind of automatic Their recommendations have been almost reflex. It's not that of a robot, but of a the M111tary Air Transport Command identical to the procedures we developed (MATS). I flew from the United States to person trained to perform with instant and earlier for Frontier. correct logic. The technique also allows both au points of Europe and the Far East, in­ Before the preseTlt approach and landing cluding Japan. When not flying scheduled pilots to work as a team. Each person knows procedures were adopted, we discussed the what the other is doing at all times. trips, I instructed on the DC-6B, qualifying proposed changes with all chief pilots and MAKING THE CHANGE new pilots for MATS operations. most crew membe~. Our goal was to develop Between 1955 and 1957, I flew a scheduled good habits through training. We found the As with most new ideas, there was some three round trips a month from McGuire best training is accomplished during line op­ initial resistance to the new prbcedures. Air Force Base in New Jersey to various eration on a daily basis, with each pilot ob­ We soon concluded that oral discussions points in Europe and the Mideast. These serving the other in a competitive profes­ would not convince skeptics of the merits of included stops at Newfoundland, Goose Bay, sional manner. proposed changes in operating procedures. Labrador, Iceland, the Azores and Bermuda. The procedures can be broken down into It was then decided that Captain Chick On many of the Atlantic trips destination two oarts: Stevens would demonstrate, during actual weather was at minimum ce111ng and visibll­ Stabllized Approach. The aircraft is flown flight, the new approach and landing tech­ ity for landing. As a matter of fact, it was on the approach at a constant airspeed and niques to as many members of the pilot's very common on the North Atlantic in those a constant rate of descent from 500 feet Air Safety Committee, chief pilots and line pre-jet days to experience instrument flight above the ground to touchdown. pilots as feasible. After the demonstrations conditions from takeoff to landing. Runway Stanr:lardized Appro!lch and Landing Tech-, were concluded, the procedures were adopted markings and lighting were usually mini­ nique. The crew is trained to perform duties in 1965. They became standard operating mum. Radio aids left much to be desired. by habit with a high degree of discipline. procedures for Frontier's Boeing 737 and The North Atlantic operation was quite a This overcomes any tendency toward com­ Convair Jet-prop 580 fleets. contrast from my previous assignment. Then placency. It also develops a high degree of The approach and landing technique, once I flew mostly from Travis Air Force Base, sktll and creates an ·atmosphere of competi­ adopted, has since required little supervi­ near San Francisco, to Tokyo via Honolulu, tion to make a perfect approach and land­ sion by the FAA or Frontier management. Hawaii and Wake Island. ing. Every approach and landing, day or Individual pilot's desires to be professional On the Pacific trips, crews pretty much did night, good weather or poor, is conducted and follow standard operating procedures their own thing when conducting the ap­ with the same cockpit discipline. Habits are have had a standardization effect on all proach and landing phase of the flight. fo!'med, and each approach and landing is pilots, including the newly hired ones. Weather usually was not a problem and most treated a~ if made under the worst condi­ Much more technical detail about the p-ro­ landings were made with good visibility and tions possible. cedures could be added. But as far as the ceiling. In fact, the majority of time weather MEMORY AIDS average passenger is concerned, it seems only was clear. Captain Pete Lamkln-then a Frontier necessary to emphasize that these proce­ The North Atlantic was quite a different check airman-developed a procedure using dures have made your flight on Frontier story. Flying it is survival of the fittest. The mnemonics, a word derived from the Greek safer. Azores, for example, are noted for severe goddess of memory, Mnemosyne. Mnemonics In this respect, I must inject a note of per­ crosswinds occasionally compounded by is simply a technique of improving the mem­ sonal gratitude to Captain Chick Stevens. driving rain. England is plagued with fre­ ory. Capt ain Lamkin's mnemonic, adopted As Supervisor of Flight Training during the quent fog as thick as split pea soup. The by Frontier to assist during approaches, is: gestation and implementation period, he whole continent of Europe, particularly dur­ West coast railroad. bore the brunt of adverse arguments. But ing the winter, has many periods of low vts1- WEST is a reminder to check the latest he stuck to his guns. With the backing of b111ty. This often requires pilots to execute Weather. All facets of weather are consid­ the chief pilots and the pilot's Air Safety approaches down to the lowest allowable ered, such as landing minimums, wind, run­ Committee, his dedication paid off in altitude-and usually after being in a pa­ way conditions. Frontier's excellent cockpit discipline, alert­ tience-straining holding pattern for long Coast stands for Checklist and Clearance. ness and concentration during the approach periods of time. It's a reminder to read the descent and ap- and landing phase o! fiight.e